2023-05-30 22:41:00
In the Tokyo foreign exchange market on the 31st, the dollar/yen exchange rate remained in the upper 139 yen range to the dollar. The move to test the dollar’s topside has come to a halt as the Japanese currency authorities put pressure on the yen’s depreciation and interest rates in the United States have declined. In the United States, it is expected that the development will be centered on supply and demand related to the end of the month, as it is difficult to move ahead of the House of Representatives vote on raising the debt ceiling.
On the other hand, in the early morning, North Korea launched a missile and announced civil protection information targeting Okinawa Prefecture, but the reaction of the yen exchange rate was limited.
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Kentaro Doi, senior investigator of the New York Market Business Unit of Sumitomo Mitsui Trust Bank, said that the dollar/yen had been overbought from a technical point of view, so the rise had slowed down, but he said, “We cannot yet judge that they have reached a peak.” indicate. 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 that “if necessary, there is no change in our thinking.” Meanwhile, U.S. Treasury yields fell on expectations of a bill to raise the debt ceiling.
Paying close attention to exchange rate trends and responding appropriately if necessary;
The dollar/yen exchange rate hit a six-month high every day, approaching 141 yen, but the rise has come to a halt due to the restraint on yen depreciation and the narrowing of the Japan-US interest rate differential. However, the downside is firm once morest the backdrop of speculation of additional US interest rate hikes, and if major US economic indicators to be announced in the latter half of the week are strong, US interest rates will rise once more, and the dollar’s strength is expected to return.
According to Doi, if bond prices continue to rise and stock prices continue to fall as a result of the adjustment in May, the topside of the dollar/yen will be weighed down by a decline in US interest rates, but the main concern is that the issue of raising the US debt ceiling will go to a vote and be broken off. Considering that it is not a scenario, he pointed out that “it is difficult to try the lower price.” He said, “There are factors from the US side, such as the weekend’s employment statistics, and the Japanese side’s remarks alone will not change the trend.”
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