On the 24th, the yen exchange rate in the Tokyo foreign exchange market was in the high 154 yen range to the dollar, marking the lowest price in about 34 years since the previous day. Amid awareness of the 155 yen milestone, which could lead to authorities’ intervention, yen selling became dominant due to risk appetite due to rising stock prices.
The yen hit its lowest value against the Australian dollar in about nine years and four months. Australia’s inflation indicators exceeded expectations, leading to active buying of the Australian dollar.
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Junichi Ishikawa, senior market analyst at IG Securities, says that the dollar-yen exchange rate “looks like it won’t end its rise until it hits 155 yen.” Stock prices continued to rise as Middle East risks subsided, and the company explained that “risk appetite has increased pressure on the yen to depreciate.” In particular, he pointed out that the rise in the Australian dollar and yen due to upward swings in the euro-yen, pound-yen, and inflation indicators was weighing on the yen.
On the other hand, he pointed out that the situation is being supported by authorities’ intervention and caution about the Bank of Japan’s monetary policy meeting starting tomorrow. Short positions in the yen are piling up, and “Bank of Japan Governor Kazuo Ueda has made hawkish statements suggesting an early additional interest rate hike and an early reduction in government bond purchases, leading to concerns about the risk of triggering yen buybacks.” There are some aspects that are true.”
Taishi Fujita, a researcher at Mitsubishi UFJ Bank’s Americas Financial Markets Department based in New York, predicts that the price will likely continue to move in the high 154-yen range, as there are concerns about intervention above 155 yen. He added, “Even if U.S. interest rates fall, if stocks are resilient, the dollar-yen exchange rate will be resilient.Unless there is something that reverses the U.S. Financial Authority’s cautious stance on interest rate cuts, the trend of the dollar’s appreciation and yen’s depreciation will continue.” I’m looking at it.
Australia’s consumer price index (CPI) for the January-March period grew faster than market expectations. In the futures market, expectations for interest rate cuts within this year have significantly receded. Australian interest rates are rising and the Australian dollar is being bought.
Australia’s central bank eliminates expectations for interest rate cuts this year – CPI significantly exceeds central bank’s target range
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