The yen temporarily hit 155.37 yen to the dollar, the lowest since the mid-1990s. Markets are increasingly wary of signs of intervention by the Japanese authorities.
The dollar/yen pair then narrowed its gains amidst unstable price movements, gaining about 0.3% to 155.26 yen in late trading.
In an interview with Reuters, Takao Ochi, a member of the Liberal Democratic Party’s House of Representatives, pointed out that if the dollar rapidly swings toward 160 yen, economic policy managers and monetary authorities may be forced to take action. There is not much discussion within the Liberal Democratic Party regarding the level of the exchange rate, but if the exchange rate were to reach 160 or 170 yen, those in charge of economic policy would have to take some measures, such as taking additional countermeasures against the yen’s depreciation. I might think about it,” he said.See more
Jayati Bharadwaj, global FX strategist at TD Securities, said, “The dollar/yen movement is consistent with broader dollar revaluation movements.It is not driven by speculation about the Bank of Japan (intervention), but is backed by fundamentals. “There was a wide range of movements in the dollar and yen,” he said.
The dollar index against major currencies rose 0.2% to 105.84. The weak US index announced on the 23rd and the strong euro zone index remain factors, and at one point hit a two-week low of 105.59. There was also a scene.
The dollar also pared its gains after March 24 US durable goods orders released on the morning of the 24th suggested that corporate capital investment may have slowed in the first quarter. See more The euro/dollar was little changed at $1.0697, while the pound/dollar was up 0.1% at $1.2460.
The Australian dollar/US dollar rose 0.1% to US$0.6497. The Australian dollar briefly rose to US$0.6530 after the Australian Consumer Price Index (CPI) rose more than expected in the first quarter, dispelling expectations for an interest rate cut this year.See more
All eyes will be on the US Personal Consumption Expenditure (PCE) price index, which will be released on the 26th. The US Federal Reserve (FRB) places emphasis on this index as a price target. According to CME FedWatch, there is a 70% chance that the Fed will cut interest rates by September.
Government bond yields rose. Traders are looking for more clues about the Fed’s policy and are awaiting the release of first-quarter U.S. GDP figures on the 25th and the March personal consumption expenditure (PCE) price index on the 26th.
The yield on the benchmark 10-year Treasury note rose 5 basis points (bp) to 4.646%. The two-year bond yield rose 3 basis points to 4.933%.
The yield gap between 2-year bonds and 10-year bonds decreased by 2 basis points to -29 basis points.
The federal funds (FF) interest rate futures market is pricing in a 43bp rate cut this year.
On the same day, the Treasury Department held a record auction of $70 billion in five-year bonds. The auction follows strong demand for a $69 billion two-year bond auction the day before.
The Treasury Department will hold an auction for $44 billion in seven-year bonds on the 25th.
Trading ended mixed amid unstable conditions. While rising U.S. bond yields will weigh on the market, strong corporate performance is expected, especially among high-tech giants.
The $70 billion auction of five-year U.S. bonds, the highest on record, pushed up Treasury yields and weighed on stock prices. The 10-year bond yield rose 5 basis points to 4.6459%.
Gold prices fell for the third day in a row due to selling due to position adjustments ahead of the release of major US economic indicators. The settlement price (equivalent to the closing price) of the main contract month, June, was $2,338.40 per ounce, down $3.70 (0.16%) from the previous day.
Prices fell as excessive caution over the worsening situation in the Middle East receded. The settlement price (equivalent to the closing price) of the June contract for the standard U.S. oil grade WTI was $82.81 per barrel, down $0.55 (0.66%) from the previous day. The July contract fell by $0.47 to $82.09.
The market was pushed down by the cessation of buying due to concerns about energy supply due to the increasingly tense situation in the Middle East. In the market, it is believed that a significant “risk premium” has been added to the crude oil market due to the intensifying conflict between Israel and Iran, and as the exchange of attacks between the two countries has subsided for the time being, this premium is shrinking. be.
However, the future of the situation in the Middle East remains uncertain.
This is a provisional value based on LSEG data.The previous day’s ratio may not match
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Tags: Market Summary #24th Dollar point yen range wary intervention yields rising Stocks mixed Reuters
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 Dollar at one point in the low 155 yen range, wary of intervention, yields rising Stocks mixed | Reuters){kind=link}