April 30th: In the foreign exchange market this week, there are voices saying that there are concerns about the unstable price movements of the dollar/yen. Image photo taken in June 2017 (2024 Reuters/Dado Ruvic/Thomas White)
TOKYO, March 30 (Reuters) – In the foreign exchange market this week, some say there are concerns about the dollar/yen pair’s unstable price movements. After the Bank of Japan’s monetary policy meeting, market attention is focused on the United States, where the Federal Open Market Committee (FOMC) and employment statistics are scheduled to be announced. Depending on the results, we cannot deny the possibility that speculation about further interest rate hikes will rekindle, and the dollar is likely to trend strongly, while there remains a deep-rooted sense of caution about yen-buying intervention.
The expected range is 154 to 158 yen for the dollar and 1.06 to 1.08 for the euro.
The dollar sharply rose to the 160 yen level on the 29th, which was a public holiday in Japan, hitting a new high in 34 years, but then reversed and swung sharply higher to the 154 yen level. There is widespread speculation in the market that the government has intervened to buy the yen, but Finance Minister Masato Kanda did not reveal the facts, saying only, “We will continue to take appropriate measures as necessary.”
Meanwhile, the yield on the 10-year U.S. Treasury note has fallen more than 1% since the end of last year to 4.6%, and is on track to approach the 17-year high of 5% set in October last year. The current strong economic performance has significantly reduced expectations for interest rate cuts, and “When I talk to investors in the United States, I hear that there is a possibility of interest rate hikes rather than rate cuts,” said a foreign bank official.
Masafumi Yamamoto, chief foreign exchange strategist at Mizuho Securities, said, “There are still many participants who want to buy the dollar.If the dollar depreciates, including through yen-buying intervention, they will immediately buy.” “Deaf”.
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