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Yen Hovers Near ¥156 as U.S. Yields Rise Before Fed Decision

Traders position for a slower pace of future U.S. rate cuts, keeping dollar demand firm.

Overview

  • The dollar climbed to the upper ¥156 per dollar in late New York trading on Dec. 9 before holding in the mid-¥156 range in early Tokyo on Dec. 10.
  • Rising U.S. long‑term yields widened the JapanU.S. rate gap and spurred yen selling and dollar buying, according to market participants.
  • U.S. stocks softened ahead of the meeting, with the Dow falling 215 points on Dec. 8 and another 179 points on Dec. 9 as investors adjusted positions.
  • Tokyo equities turned volatile on Dec. 10, with an early surge above 51,000 on the Nikkei reversing as profit‑taking in major semiconductor names dragged the index lower by midday.
  • Investors looked to the FOMC outcome due Dec. 10 and to guidance from Chair Jerome Powell and BOJ Governor Kazuo Ueda for signals on the path of rate cuts.