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Yen Near ¥156 as BOJ Flags Fast Rise in Yields, Markets Await Fed

Investors brace for the Fed meeting following a BOJ warning on long-term rates.

Overview

  • The yen traded around ¥155.9–¥156.0 per dollar in early Tokyo after New York levels in the high-¥155 range.
  • Dollar buying outweighed yen demand as higher US long-term yields widened the USJapan rate gap.
  • BOJ Governor Kazuo Ueda said the recent rise in long-term rates was “somewhat fast” and signaled readiness to buy bonds if moves turn exceptional.
  • The Dow fell 215.67 points on Dec. 8 on profit-taking and position adjustments ahead of the FOMC, and the Nasdaq also slipped.
  • Tokyo equities showed narrow moves with the Nikkei hovering near flat to modest gains as traders awaited guidance on the pace of potential Fed rate cuts.