Dollar/yen sharply rose to 157.18 yen as expectations for a Bank of Japan rate hike faded.

【11/19Market Overview

Tokyo time, USD/JPY initially softened as reports suggested that Governor Ueda of the Bank of Japan, Finance Minister Katayama, and Economic and Fiscal Policy Minister Jounai would hold a three-way meeting in the evening (18:10) from3participants; the sense of caution against yen depreciation rose to around155.21yen. However, optimism about the upcoming 20 trillion yen-scale economic package under the Kishida administration supported the market, and there was no wave of selling. In Europe time, after reports that the three-way meeting did not discuss specific currency matters, expectations for BoJ rate hikes receded, and yen selling accelerated.NY time, data from the U.S. Bureau of Labor Statistics (BLS) on U.S. employment was not ready by12/9–10forFOMCmeeting, leading to a retreat in expectations for a January rate cut by the Fed. Broad dollar buying pushed the USD/JPY higher to156.88yen. After-hours, NVIDIA reported strong earnings, and with optimism about the U.S. economy, the Dow Jones rose and USD/JPY climbed to157.18yen.

【11/20Market View