The yen fell to the ¥158-per-dollar range in the New York market. Expectations of an early additional US rate hike strengthened, prompting trading focused on a widening US-Japan interest rate differential.
In the New York foreign exchange market, the yen traded at ¥158.32–¥158.42 per dollar as of 5 p.m., weakening by 95 sen against the dollar from the previous day. The market intensified its shift toward the US dollar, with yen selling and dollar buying prevailing.
The backdrop was strengthening expectations of an early additional US rate hike, leading to broader trading focused on a widening US-Japan interest rate differential. Oil futures rose amid growing uncertainty over the situation in the Middle East, heightening caution in the foreign exchange market.
Strong economic indicators on the state of the US economy also appeared to support the view that the Federal Reserve would decide on an additional rate hike in October. The euro stood at $1.1379–$1.1389 and ¥180.17–¥180.27 per euro.