In the New York FX market, USD/JPY continued to fluctuate in the ¥159 range, while investors stayed on the sidelines ahead of Chair Warsh's speech tomorrow. There is a view that the dollar's direction will be determined by the fading effects of intervention and developments in the United States.
A wait-and-see mood prevailed in today's New York FX market, with USD/JPY remaining in the ¥159 range. Dollar selling regained the upper hand as overseas trading began, but the downside held firm in the ¥159 range, while caution around ¥160 persisted.
Market participants said the effects of coordinated intervention by the Japanese and US authorities appeared to be fading over time, and pointed out that USD/JPY was likely to become increasingly driven by developments in the United States. Some also said the Federal Reserve's interest-rate outlook and US economic and inflation indicators could weigh on the dollar as near-term factors.
EUR/USD fluctuated in the mid-1.16 range, while EUR/JPY continued to swing in the ¥185 range. Stable oil prices provided support for the euro, while some market participants also saw weak European natural-gas inventories as making it more difficult for the ECB to manage monetary policy.