Business · Markets · 3 hrs ago
Yen Holds Near 158 to the Dollar in Early Tokyo Trading
The yen traded near 158 to the dollar early on October 22 in Tokyo, little changed from the previous afternoon.
It fell against the euro, trading at 177.62–65 yen per euro.
Concerns about worsening Middle East tensions have kept oil prices high, raising worries about Japan's trade balance and putting pressure on the yen.
Higher US long-term interest rates have also supported the dollar, as investors consider the possibility of renewed inflation in the United States.
Expectations that the Bank of Japan may raise rates have helped support the yen.
Markets mostly expect the central bank to hold rates at its October 29–30 meeting but raise them in December.
The yen traded nearly unchanged at 158.12–158.14 per dollar in Tokyo at 8:30 a.m. on October 22.
Selling pressure came from concerns about higher oil prices, Japan’s trade balance and rising US long-term interest rates.
Expectations that the Bank of Japan may raise interest rates later this year supported the yen.
The yen weakened against the euro, trading at 177.62–177.65 yen per euro.
- Who
- The yen and the US dollar. The Bank of Japan and market participants also feature in the report.
- What
- The yen traded nearly flat in the low 158-yen range against the dollar.
- When
- October 22, at 8:30 a.m. in Tokyo.
- Where
- The Tokyo foreign exchange market.
- Why
- Oil-price concerns, Japan’s trade balance and higher US long-term rates weighed on the yen, while expectations of a Bank of Japan rate increase supported it.
This story does not have two clearly opposing sides.
US crude futures had been above $100 a barrel.
WTI futures closed in the $97 range, while the US 10-year yield rose to 5.12%.
Bank of Japan Deputy Governor Ryozo Himino warned that delaying adjustments to monetary easing could worsen the economy.
The yen traded at 158.12–158.14 per dollar in Tokyo.
- Dollar exchange rate
- 158.12–158.14 yen at 8:30 a.m. on October 22
- Euro exchange rate
- 177.62–177.65 yen at 8:30 a.m. on October 22
- WTI futures
- Closed in the $97-per-barrel range on October 21
- US 10-year yield
- 5.12% on October 21, up 0.01 percentage point
- Bank of Japan policy meeting
- Scheduled for October 29–30
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What people are saying
If adjustments to monetary easing are delayed in the current situation, where real interest rates are low and prices are prone to rise more than expected, that could lead to a deterioration in the economy.