In Tokyo trading on the 29th, the yen traded in the low ¥157 range. Yen selling dominated amid expectations of additional rate hikes by the Federal Reserve, while caution over intervention by the government and the Bank of Japan remained strong.
In Tokyo trading on the 29th, the dollar traded in the low ¥157 range, with dollar-yen trading at ¥157.37–¥157.39 as of 5 p.m. In early-morning trading, the pair moved narrowly around ¥157.40, opening at ¥157.40 at 8 a.m. Euro-yen also moved narrowly in the low ¥178 range, returning to ¥178.61–¥178.65 as of 5 p.m. Euro-dollar stood at $1.1371 at 8 a.m., almost unchanged from the previous close in New York.
Market participants say movements in long-term US interest rates are determining the direction of the yen, as expectations spread that the Federal Reserve will raise rates further to combat inflation, making yen selling and dollar buying dominant. At the same time, caution over foreign-exchange intervention by the government and the Bank of Japan remains strong.