The dollar-yen rate moved rapidly by nearly ¥7 in one week, with the yen strengthening from the ¥160-per-dollar range to ¥152.89. The unwinding of yen carry trades has been cited as the backdrop, while the yen weakened again after the U.S. FRB resumed rate hikes. Going forward, movements in yen carry trades are likely to be a major factor in the market.
The dollar-yen rate reached the ¥160-per-dollar range at the beginning of September, but the yen then strengthened rapidly, reaching ¥152.89 on 8 September, an appreciation of approximately ¥7 in one week.
The unwinding of yen carry trades is considered to have been behind this strengthening of the yen.
The yen then weakened again and moved into the ¥157 range on the 18th, partly because the FRB resumed rate hikes for the first time in 3 years and 2 months on the 16th.
Movements in yen carry trades are expected to attract attention as a major factor in the future trend of the yen.