(Source from Reuters/Alamy)
Japan’s yen exchange rate began to rise to the mid-131 yen range on the 10th, leading to yen purchases and dollar sales as the Fed’s financial tightening retreated as the average hourly wage growth rate in the U.S. December 2022 employment index fell short of market expectations.In the Tokyo foreign exchange market, the yen exchange rate soared 2.57 yen from 5 p.m. on the 6th to 1 dollar = 131.67 to 131.69 yen as of 8:30 a.m. on the same day.
The Tokyo Consumer Price Index (CPI) in December last year, released by Japan’s Ministry of Internal Affairs and Communications, recorded 103.9 excluding fresh food, up 4.0 percent from a year earlier, the highest increase in 40 years and 8 months since April 1982.
(Source from Reuters/Alamy)
As QUICK exceeded the 3.6% increase expected in the market in advance, yen purchases flowed in and temporarily jumped to USD 1 = 131.60.
According to U.S. employment statistics for December, the number of employees in the non-agricultural sector increased by 223,000 from the previous month, exceeding the market estimate of 200,000.As of 9:34 a.m., the yen was trading at 2.08 yen and 1.54% higher at 1 dollar = 132.16 to 132.18 yen.
In the Sydney foreign exchange market in Australia, the yen exchange rate started at 1 dollar = 131.80~131.90 yen, up 0.05 yen from the previous day.
(Source from Reuters/Alamy)
On the 9th (local time), the yen exchange rate in the New York foreign exchange market closed at 1 dollar = 131.85~131.95 yen, up 0.20 yen from the 6th.yen buying and dollar selling continued as December employment statistics retreated the observation of prolonged interest rate tightening.
In the Tokyo foreign exchange market, the yen is rising against the euro. At 9:28 a.m., 1 euro = 141.71 to 141.73 yen, up 0.59 yen from the previous session.
The Fed is selling dollars to major currencies with the prospect of lowering the pace of interest rate tightening.The euro is falling against the dollar. At 9:28 a.m., 1 euro = 1.0721~1.0723 dollars, down $0.0209 from the previous session.
MIKE CHOI
ASIA JOURNAL
