In the New York foreign exchange market on the 16th, USD/JPY initially fell to ¥154.86 before rising to ¥156.42 and closing at ¥156.36. While the FOMC decided to raise rates for the first time in 3 years, with 1 more hike expected this year, the yen is forecast to see more volatile movements ahead of the Bank of Japan's meeting.
In the New York foreign exchange market on the 16th, USD/JPY initially fell to the upper ¥154 range before rapidly recovering to the lower ¥156 range. A pullback in crude oil temporarily weakened the momentum behind dollar buying, but stronger-than-expected US August retail sales, which posted their largest increase, supported dollar buying.
The FOMC proceeded with its first rate hike in 3 years, and expectations that there will be 1 more hike this year have spread, pushing up the probability of an additional rate hike in short-term money markets. Fed Chair Warsh (ウォーシュ) pointed to persistently high inflation, prompting expectations that this will tend to support the dollar.
However, the Bank of Japan's monetary policy meeting begins today, and yen buying could strengthen depending on remarks by Governor Ueda (植田) at his press conference regarding the pace of additional rate hikes. The Bank of England's policy meeting is also scheduled, and volatile trading is expected to continue as monetary policy in Japan, the US and Europe intersects.