In Japanese and US foreign exchange trading on the 13th, USD/JPY stalled in the low ¥158 range. The IMF's reference to the possibility of the BOJ gradually raising its policy rate toward a neutral level made expectations for a December rate hike more prominent.
In Tokyo trading on the 13th, USD/JPY fell from a high of ¥158.65 to as low as ¥158.19, against a backdrop of the IMF suggesting that the BOJ may gradually raise its policy rate. Following the IMF's view, expectations that the BOJ will leave policy unchanged this month have increased, while an additional rate hike in December has also come into focus.
In Japanese and US trading, the US 10-year Treasury yield fell below 5.2%, while WTI crude oil declined to the low $92 range. There were periods when dollar selling predominated, but movements in cross-yen pairs supported the dollar on the downside. The major central banks' tightening stance was reaffirmed, while directional momentum in major currencies, including the yen, weakened.
In Japan, the September domestic corporate goods price index rose 6.8% year on year, below the market forecast of 7.6%. This added to the crosscurrents surrounding the BOJ's policy management and further heightened tension in the foreign exchange market.
The IMF's view suggests that the BOJ may gradually raise its policy rate toward a neutral level. While markets are pricing in unchanged policy at the Monetary Policy Meeting at the end of this month, moves to look ahead to a rate hike at the December meeting are spreading.