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Yen Slides to High ¥153 per Dollar as Fed Cut Bets Recede

Reduced odds of near-term Fed cuts kept dollar demand firm against the yen.

Overview

  • The yen traded at ¥153.86–¥153.88 per dollar at 5 p.m. in Tokyo on Nov. 6, holding in the high ¥153s.
  • Stronger-than-expected U.S. employment indicators the prior day led markets to scale back expectations for Federal Reserve rate cuts.
  • Traders favored selling yen and buying dollars on the view that the JapanU.S. interest-rate gap will remain wide.
  • A rebound in the Nikkei encouraged risk-taking by investors, which typically weighs on the perceived lower-risk yen.
  • In New York on Nov. 6, the Dow Jones Industrial Average fell 398 points to 46,912, reflecting choppy trading that participants say makes the outlook hard to gauge.