The dollar traded in the low ¥156s in morning trading as expectations surrounding Japanese and US monetary policy continued to vie with dip-buying. Buying by importers and selling by exporters vied with each other around the Tokyo fixing.
The dollar was trading in the low ¥156s in morning trading. Amid mixed expectations that the Bank of Japan could accelerate the pace of rate hikes and that expectations for an early US rate hike had receded, the dollar at one point in the morning tested the upper half of the ¥155 range.
It subsequently rebounded on dip-buying, and the market increasingly viewed the low ¥155s as support again.
With days ending in 5 or 0 approaching, a period when settlements for real demand are concentrated, buying by importers and selling by exporters vied with each other at the Tokyo fixing. Related reports said Katayama Satsuki (片山さつき) would remain finance minister and that the cabinet would be reshuffled, with market participants' reaction being closely watched.
Comments from market participants have pointed to dip-buying amid an awareness of the dollar's firmness, as well as the impact of reports that the Government Pension Investment Fund (GPIF) is reviewing its asset allocation.