Following the hawkish remarks from Ueda, the Bank of Japan governor, the dollar/yen fell to the 154 yen level briefly.

【12/1Market Overview

In Tokyo time, when Governor Ueda of the Bank of Japan stated that “the decision on whether to raise rates should be made appropriately at the next meeting,” expectations for BOJ rate hikes rose, and yen buying led the way. Dollar/Yen fell to below156yen, to155.40yen. In European hours, with Governor Ueda’s hawkish comments, expectations for an additional rate hike in12/18-19this month led to yen buying first. Also, with a view that U.S. rate cuts would progress and the U.S.-Japan interest rate differential would narrow, yen buying and dollar selling intensified, and the dollar/yen briefly hit a low of154.66yen,11/17to update the trough since then.In New Yorktime, dollar/yen, along with rising U.S. 10-year Treasury yields, was bought back to the155yen level.

【12/2Market View