The dollar-yen rate fell into the upper ¥158 range in Tokyo trading on the morning of the 3rd. Against a backdrop of growing expectations of an accelerated BOJ rate-hike pace and remarks by Policy Board member Takata Hajime (高田創), caution over intervention spread and market participants increasingly stayed on the sidelines ahead of the release of the August US employment report.
The dollar-yen indicative quote in Tokyo trading on the morning of the 3rd was ¥158.89–90, leaving the dollar down 80 sen against the yen from the previous day.
In overseas trading the previous day, the dollar plunged to the ¥158.20 range on heavy selling before moving to the ¥158.60 range under the influence of higher oil prices. It subsequently traded in the upper ¥158 range amid caution over intervention by the government and the Bank of Japan. As of 9 a.m., it had been moving in the ¥158.60–90 range.
In a speech, BOJ Policy Board member Takata Hajime (高田創) referred to the need for a flexible response, and expectations of an accelerated pace of rate hikes spread through the market.
A domestic bank dealer said there were rumors of a rate check, but trading volume was low. The dealer said caution over intervention and a weak ADP employment report may have contributed to dollar selling and yen buying.