The dollar-yen fell to 147.56 amid rising concerns about a U.S. government shutdown and growing expectations of a resumption of Bank of Japan rate hikes.

【9/30Market Overview

Tokyo time, the USD/JPY rose to as high as148.84yen at the end-of-month fixing, but thereafter gradually moved lower. The weak auction result for the new 2-year government bonds pushed domestic mid-term bond yields higher, prompting yen buying, which sent the pair down to148.16yen. In European hours, after it became clear that the Bank of Japan’s announced purchase plan for the 10 to 12-month government bonds had the offers scaled back from the previous period, yen buying and dollar selling led the market. Also, with the negotiations between the ruling and opposition parties over a stopgap funding bill stalled in the United States, raising concerns that some government agencies may shut down from Oct 1, dollar selling prevailed and USD/JPY fell below10月1日, to148yen,147.65yen, but subsequently rebounded to the148yen area.NYTime,9月 US Chicago Purchasing Managers’ Index and9月 US Consumer Confidence Index came in below expectations, sending USD/JPY down to147.65yen.

【10/1Market View