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The US dollar recovered to the 143 yen level temporarily
the US dollar fell and reached the 142.00 yen level against the Japanese yen.
“Following the release of last week’s US employment statistics, the US dollar fell and reached the 142.00 yen level against the Japanese yen”
In the aftermath of the release of the latest US employment statistics, the US dollar faced a decline, reaching the 142.00 yen level against the Japanese yen. The new week commenced with the US dollar continuing its downward trajectory, commencing at the 142.10 yen level. However, a surge in demand for the US dollar ensued. The swift correction that followed the significant fluctuation around the 144 yen level in the previous week exhibited signs of exaggerated response. Despite relatively weaker US employment statistics, the projection of an interest rate hike at the upcoming July FOMC meeting remained unchanged. Consequently, the US dollar experienced strength against the yen, driven by the careful consideration of the interest rate differential between Japan and the United States.
While the Nikkei 225 index soared by 170 yen in the morning session, it subsequently experienced a decline exceeding 490 yen, breaching the pivotal 32,100 yen level. This market movement, coupled with other contributing factors, weighed down on the overall sentiment. Nevertheless, amid the increasing stabilization of the USD/JPY downside, Japanese equities witnessed a resurgence in afternoon trading, further fueling the momentum for US dollar repurchases.
Following the attainment of the 143 yen level, a temporary pause ensued, only to be followed by another downturn, leading to a decline reaching the 142.60 yen level.
In addition, the euro also exhibited weakness against the US dollar. Initially hovering around the 1.0970 level in the morning, the euro gradually depreciated against the greenback, slipping below the 1.0950 level. The euro-dollar pair had previously witnessed an upswing from the lower 1.08 range to the upper 1.09 range in response to selling pressure on the US dollar towards the end of the previous week. The resulting counter-reaction materialized at the start of the current week.
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