Treasurer Kanda: ‘We will respond without ruling out all options’
The dollar-yen exchange rate hit a 2023 high of 147.80 yen. Treasurer Kanda of the Ministry of Finance made his customary check-and-balance statement. However, this statement was conventional and there was no sense of any increased urgency.
The USD/JPY pair adjusted a little, but did not break below 147 yen, and there are signs that the pair is looking for a new low for the yen above 147.50 yen.
In Europe, the eurodollar briefly rebounded to around 1.0748 after Central Bank of the Netherlands Governor Knott said that the market may have underestimated the September rate cut. However, as Mr Knott is a hawkish man, this is in a sense a natural statement. There are no particular surprises, so the eurodollar is struggling at the low end of the range.
The Eurodollar fell in the wake of worsening services PMIs in Germany and the rest of Europe.
Euroyen also fell and the dollar softened.
With the release of the ISM non-manufacturing figures, the US economy is slowing down a bit, and depending on the figures, the dollar may loosen in some places, but it is basically a buying opportunity.