Dollar-yen rose for a fifth consecutive day in the New York market on the 28th, closing at ¥160.09. Dollar buying prevailed against a backdrop of higher U.S. long-term interest rates and remarks from the Fed leadership.
Dollar-yen closed at ¥160.09 in the New York market on the 28th, up around ¥0.70 from the previous day's New York close of ¥159.39. It rose to ¥160.20 shortly before 2:00 a.m., reaching its highest level since 31 July, but gains were capped toward the close amid caution over possible intervention by the government and the Bank of Japan. The U.S. 10-year Treasury yield, a benchmark for long-term U.S. interest rates, rose to around 4.7280% at approximately 2:30 a.m. Expectations for a rate hike continued to build following Fed Chair Warsh's speech.
Euro-dollar fell, closing at $1.1585, down around $0.0068 against the euro from the previous day. U.S. interest rates continued to rise following the Fed chair's speech, driving broad-based dollar strength, and euro-dollar briefly fell to $1.1578 shortly before 3:00 a.m. The Dollar Index rose as high as 99.73. Market expectations based on Fed funds futures showed the probability of a 0.25% rate hike at the September FOMC rising to 59.5%, while the probability of a hold fell to 40.5%.
Euro-yen fell back, closing at ¥185.48. It briefly reached ¥185.99 shortly before 9:00 p.m., its high for the day, but turned lower after buying ran its course and fell to ¥185.39 shortly after 4:00 a.m. Buying followed the rise in dollar-yen, while selling also emerged as euro-dollar declined.
The day's reference ranges were ¥159.30–¥160.20 for dollar-yen, $1.1578–$1.1658 for euro-dollar and ¥185.39–¥185.99 for euro-yen.