On the 8th, the yen rose to the upper ¥157 range per dollar in New York trading. Comments on Iran by President Trump and developments related to the Federal Reserve were seen as factors supporting yen buying.
In New York foreign exchange trading on the 8th, the yen rose to the upper ¥157 range per dollar. Yen buying and dollar selling prevailed against the backdrop of a narrowing Japan-US interest-rate gap, and the yen rose to ¥158.36 in the afternoon before plunging back to around ¥157.52, where it settled.
One factor supporting the yen was the perceived easing of Middle East risk after US President Trump posted on social media denying an attack on Iran. Crude oil futures subsequently fell sharply, while US long-term yields also declined.
Market expectations regarding the Federal Reserve’s monetary policy also supported the yen. After Board Governor Waller indicated opposition to hasty rate hikes, views spread that the prospect of an additional rate hike being a certainty at the FOMC later this month had receded.
US initial jobless claims fell by 2,000 from the previous week to 197,000, slightly below market expectations. The market reaction was limited, and dollar-yen movements were subdued.