With the release of the US JOLTS data and ISM Manufacturing Index due tonight, dollar/yen is reportedly approaching the ¥160 level again, while Japan’s 10-year government bond yield is said to have reached around 3%, a 30-year high.
In the Tokyo market, dollar/yen reportedly traded steadily in the upper ¥159 range before approaching the ¥160 level in the afternoon on rising US long-term yields. It is reported that movements in US interest rates are serving as a cue for the yen exchange rate.
US JOLTS job openings and the ISM Manufacturing Index are scheduled for release tonight, and early rate-hike expectations could rise depending on the results. Market participants are reportedly anticipating a move to test the dollar’s upside.
Reports of a meeting between Finance Minister Katayama (片山) and the Governor of the Bank of Japan are circulating, and there is reportedly a view that the meeting could signal the sustainability of fiscal policy and the path of future rate hikes to the market. It is reportedly expected that the Bank of Japan’s monetary policy approach will continue to be left to the Governor’s judgment.
Tonight’s event schedule includes major PMI and inflation indicators from Europe and the United States, and dollar/yen movements could affect trading during the 18:00–23:00 time slots, depending on these developments.