Following the Bank of Japan’s main opinions, yen selling spread and dollar-yen rose from the ¥157 range in the morning to the ¥158 range. Statements from the Cabinet Office eased concerns about additional Bank of Japan rate hikes, and the market generally moved toward a weaker yen.
The Bank of Japan’s main opinions released in the morning included suggestions of additional rate hikes, prompting broader yen selling. The market does not view the Bank of Japan’s stance as a move toward substantially higher rates. The Cabinet Office’s comments served as a warning against a hawkish Bank of Japan stance, easing concerns about an early additional rate hike.
Dollar-yen rose from the ¥157.30 range in the morning to the ¥158.20 range during the morning session, reaching ¥158.40 in the afternoon. Yen selling also progressed against other currencies: euro-yen moved from the ¥178.30 range to ¥179.31, while pound-yen moved from the ¥208.70 range to ¥209.87.
Euro-dollar fell from $1.1337 to $1.1309 along with the dollar’s broader strengthening trend, while pound-dollar declined from $1.3273 to $1.3245. Following the Bank of Japan’s opinions, the market entered a weaker-yen, stronger-dollar phase.
MINKABU PRESS, the author, has organized the Bank of Japan’s announcement and the accompanying foreign exchange movements in the form of a report on the market reaction.