In the Tokyo foreign exchange market on the 31st, the dollar/yen exchange rate remained in the high range of 139 yen to the dollar. The move to test the dollar’s upside has stalled as Japanese monetary authorities pressured the yen to depreciate and interest rates in the United States have declined. In the United States, it is expected that the development will focus on supply and demand related to the end of the month, as it is difficult to progress to the vote of the House of Representatives on raising the debt ceiling.
On the other hand, early in the morning, North Korea launched a missile and issued civil defense information targeting Okinawa Prefecture, but the reaction of the yen exchange rate was limited.
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Kentaro Doi, senior researcher of the New York Market Business Unit of Sumitomo Mitsui Trust Bank, said that the dollar / yen was overbought from a technical point of view, so the progress had slowed down, but he said, “We cannot judge yet. that they have reached highlight.” note. The flow at the end of the month is also expected to be a wait-and-see development, saying, “It’s not enough to make a decision.”
Masato Kanda, finance minister at the Ministry of Finance, said on the 30th that “excessive volatility is not desirable,” and “if necessary, we will continue to take appropriate measures.” Meanwhile, US Treasury yields fell on expectations of a bill to raise the debt ceiling.
Pay close attention to exchange rate trends and respond appropriately if necessary;
The dollar/yen exchange rate hit a six-month high for consecutive days, approaching 141 yen, but the advance has stalled due to the halt in yen depreciation and the narrowing of the Japan-US interest rate differential. However, the downside is solid against a backdrop of speculation of additional US interest rate hikes, and if the major US economic indicators to be published in the second half of the week are strong, US interest rates will rise again, and the strength of the dollar is expected. to return
According to Doi, if bond prices continue to rise and stock prices fall due to the adjustment in May, the upside of the dollar / yen will be heavy due to the reduction in US interest rates. out that “it is difficult to seek the lowest price.” “There are factors from the US side, such as weekend employment statistics, and comments from the Japanese side alone will not change the trend,” he said.
