Remarks by Bank of Japan Deputy Governor Himino (氷見野) and the US Federal Reserve’s Jackson Hole symposium will be the market’s focus in the week through late August, with the yen expected to approach ¥160 per dollar again. On the 20th, the yen traded at ¥159.03–13. NVIDIA’s earnings announcement and the approximately $500 billion AI infrastructure support package are also key points of focus.
In the week from 24 to 28 August, a succession of remarks by Bank of Japan and US central bank officials will make whether the yen again approaches ¥160 per dollar a key focus in the foreign exchange market. While expectations of an early Bank of Japan rate hike remain, demand for the dollar remains firm amid heightened tensions in the Middle East. This could sustain the yen’s downward trend. In addition, the yen fell to ¥159.03–13 in the New York market on the 20th.
Meanwhile, the Jackson Hole symposium will be held from the 27th to the 29th in the United States, with a speech by FRB Chair Warsh drawing attention. If the symposium signals a stance favoring continued rate hikes, the interest-rate differential between Japan and the United States will widen, potentially strengthening yen selling and dollar buying. The direction of the yen is expected to depend on the content of remarks by the Bank of Japan and the FRB.
In the stock market, NVIDIA is expected to announce its earnings on the 26th, with revenue growth forecast against the backdrop of the AI investment boom. In addition, the US government’s approximately $500 billion AI infrastructure support package could affect the investment environment. These factors are also expected to influence the performance of technology stocks as a whole.