Business · Markets · 3 hrs ago
Yen rises against dollar as US bond yields fall
The yen strengthened to 157.65–75 per dollar in New York trading on October 29, up 15 sen from the previous day.
Falling US long-term bond yields helped make the yen more attractive against the dollar, as traders anticipated a narrowing in the gap between Japanese and US interest rates.
US technology shares fell amid uncertainty about investment in artificial intelligence, while the US economy showed strength: third-quarter growth was 3.4% at an annual rate, above forecasts.
US inflation data were mixed, with overall inflation slowing short of expectations but still rising faster than in August.
These competing signals limited the impact of the economic figures, while traders held back ahead of the Bank of Japan’s decision.
The BOJ was expected to keep its policy rate unchanged, and markets were watching for clues in its statement and Governor Kazuo Ueda’s press conference.
The decision was due on October 30.
The yen rose against the dollar in New York on Oct. 29, closing at 157.65–75 yen per dollar.
The move followed a fall in long-term US bond yields, which encouraged yen buying and dollar selling.
Expectations of a narrower US-Japan interest-rate gap also supported the yen.
Stronger-than-expected US economic growth helped limit the yen’s gains.
Investors were also adjusting positions ahead of the Bank of Japan’s policy decision due on Oct. 30.
- Who
- Yen and dollar traders.
- What
- The yen strengthened against the dollar, closing at 157.65–75 yen per dollar.
- When
- Oct. 29, 2026.
- Where
- The New York foreign exchange market.
- Why
- Falling US long-term bond yields and expectations of a narrower US-Japan interest-rate gap encouraged yen buying.
This story does not have two clearly opposing sides.
US data showed annualized real GDP growth of 3.4% in the third quarter, above the 3.1% market forecast.
US long-term yields fell, at one point reaching their lowest level since late September.
The yen closed in New York at 157.65–75 per dollar, up 15 sen against the dollar from the previous day.
The Bank of Japan was due to announce the outcome of its policy meeting.
- Closing exchange rate
- 157.65–75 yen per dollar
- Daily change
- Yen gained 15 sen against the dollar
- US third-quarter real GDP growth
- 3.4% annualized
- US September PCE inflation
- 3.6% year on year
- Bank of Japan decision
- Due Oct. 30
What people are saying
The market is focused on a bigger issue, concerns about AI growth, rather than the data, which did not provide a major market-moving factor