The dollar/yen pair is seen testing ¥155 amid accelerating U.S. inflation and higher oil prices, while the ECB's additional rate hike and the upside surprise in U.S. PPI on the same day also affected the market.
In Thursday's foreign exchange market on the 10th, a BOJ policy board member repeatedly made remarks indicating a rate-hike stance, while giving no specific indication of the timing or pace of future increases and saying that future policy decisions would be considered carefully. At an afternoon press conference, the member indicated that the Bank would thoroughly assess developments in oil prices and foreign exchange rates at its next meeting before making a decision.
In Europe, the ECB's deposit facility rate changed from 2.25% to 2.5%, as expected, and President Lagarde indicated that future policy would be decided on a meeting-by-meeting basis. Market expectations for an additional rate hike within the year increased, but the president said the future path remained undecided.
In the United States, August PPI rose 5.4% year on year, exceeding market expectations, while core PPI accelerated to 4.6%. In addition, initial jobless claims came to 206,000, and the four-week moving average declined from the previous week.
The U.S. 10-year Treasury yield rose to around 4.96%, with higher oil prices, the upside surprise in PPI and a perceived shortfall in the scale of buybacks of long-term government bonds weighing on the market. These factors supported the dollar/yen pair's rise and affected day-to-day market movements.