Yen Pressured by Dollar Strength
The Japanese yen traded around 158 per dollar on Thursday, hovering near three-week lows as the dollar strengthened following robust US private-sector activity data that reinforced expectations for further Federal Reserve rate hikes. Rising Treasury yields and elevated oil prices also highlighted mounting inflation risks, adding further pressure on the yen. Meanwhile, traders remained alert for possible intervention as the currency approaches the closely watched 160 level, with reports indicating that the Bank of Japan conducted a rate check with market participants last Friday. The BOJ's rate hike last week was seen as insufficiently hawkish, with two officials dissenting from the decision,. Elsewhere, S&P Global data showed Japan’s manufacturing growth slowed to a seven-month low in September, amid softer increases in output and new orders.
The Japanese yen traded around 158 per dollar on Thursday, hovering near three-week lows as the dollar strengthened following robust US private-sector activity data that reinforced expectations for further Federal Reserve rate hikes. Rising Treasury yields and elevated oil prices also highlighted mounting inflation risks, adding further pressure on the yen. Meanwhile, traders remained alert for possible intervention as the currency approaches the closely watched 160 level, with reports indicating that the Bank of Japan conducted a rate check with market participants last Friday.
The BOJ's rate hike last week was seen as insufficiently hawkish, with two officials dissenting from the decision,. Elsewhere, S&P Global data showed Japan’s manufacturing growth slowed to a seven-month low in September, amid softer increases in output and new orders.