US CPI will be the next focus
In the Tokyo market today, the dollar/yen rebounded on real demand buying, briefly reaching ¥143.00, but was reversed back to the low ¥142s by overseas dollar sellers. Dollar selling prevailed after last Friday’s employment data showed that job gains were lower than expected.
The two-year US interest rate, which had been rising, failed to maintain the 5% level, and the dollar dropped to just around ¥142, continuing the heavy development, and it was thought that the dollar would continue its downward trend in Asian markets today,
The dollar was surprised by the strength of the buying appetite of actual demand.
However, when the dollar rallied back up, it was still covered by foreign selling. The next focus will be on the US CPI statistics, which are expected to be quite low. The year-on-year figure of 3.1% is close to 2%. The most likely forecast for the core figure is 5.0% year-on-year. A lower figure would likely lead to a further adjustment in the dollar.