Powell's hawkish remarks from the FRB push USD/JPY toward the upper 159 yen area.

【3/18Market Overview

Tokyo time, the dollar/yen fell to158.56yen as oil futures declined in after-hours trading and the yield on 10-year Treasuries declined.NYSEtime,2month U.S.PPI(Producer Price Index) rose above market expectations for both the overall and core indices, sending the dollar/yen to159.58yen.

FedFOMCkept the target range for the federal funds rate at3.50–3.75%, as expected. The statement noted that “the economic outlook remains highly uncertain” and that “the impact of developments in the Middle East on the U.S. economy is unclear,” signaling caution regarding higher crude prices.

PowellFedChairman said at the regular press conference that “near-term inflation concerns have risen in recent weeks,” “no rate cuts unless progress on inflation is made,” and “keeping rates at a moderately restrictive level is important.” Markets perceived him as somewhat hawkish, and the market responded with higher rates, weaker stocks, and a stronger dollar. The dollar/yen rose to159.90yen near the close.

【3/19Market View