[Tokyo Foreign Exchange] The dollar, the latter half of the 147 yen range = weakly included due to a pause in long-term US interest rate increases (3:00 p.m. on the 31st)

　The dollar exchange rate (indicative value) of the dollar against yen in the Tokyo Foreign Exchange Market on the afternoon of the 31st weakened to the latter half of the 1 dollar = 147 yen range due to a pause in the rise in long-term US interest rates for overtime trading, leading to dollar sales. As of 3:00 p.m., the dollar is 147 yen 91 to 91 yen, 83 yen higher and yen depreciation compared to the previous weekend (5 p.m., 147 yen 08 to 08 sen).
　After Tokyo time began at 147 yen 80 yen, actual demand and purchases involving the end of the month swelled, and the upper price was rounded up to the 148 yen 30 yen mark for the median price. The rise in long-term US interest rates outside of hours also supported dollar purchases. However, after the first round of purchases, the upper price became heavy, and by noon it was around 148 yen, which strengthened the impression. Entering the afternoon, the fact that long-term US interest rates outside of hours reduced the increase led to dollar sales, and softened to around 147 yen 80 yen. At lower prices, it is said that “movements to pick up low prices are scattered against the backdrop of rising US interest rates” (FX brokers), and there were scenes where they were bought back up to around 148 yen, but the return was slow, and after that, it was a soft development, such as being pushed back to the 147 yen 70 yen range at one point.
　The market is also aware of reports by the US paper Wall Street Journal (WSJ) the day before. The newspaper suggests the possibility that long-term US interest rates will continue to remain high, assuming that savings in the US private sector have accumulated due to huge fiscal transfers implemented as measures against the novel coronavirus, and the response to rising interest rates has become sluggish. In response to this report, the view that the Japan-US interest rate gap will not shrink for the time being strengthened, and it is said that “it has become difficult to sell dollars” (domestic securities).
　The euro entered the afternoon, and both yen and dollar were weak. As of 3:00 p.m., 1 euro = 147 yen 13-14 sen (previous weekend 5:00 p.m., 146 yen 27-29 sen), 0.9947 to 9948 dollars against the dollar (same 0.9945 to 9946 dollars).

Author: Jiji Press

Last Updated: 10/31 (Mon) 15:47