The BOJ rate hike acceleration expectations and hawkish remarks from Fed Governor Waller pushed the dollar/yen down to the 155 yen level.

【9/3Market Overview

During Tokyo time, the dollar/yen initially rose to158.96yen, and after reports that U.S. Treasury Secretary Yellen discussed with Bank of Japan Governor Ueda about addressing the significant undervaluation of the yen, expectations spread that the BOJ’s pace of rate hikes would accelerate,157yen, indicating a slide to the 157 level. In European trading, as the dollar/yen remained in a downside trend,GPIF (Government Pension Investment Fund) held8/21an investment committee meeting, fueling stronger expectations that the basic portfolio would be reviewed.NYtime, WallerFRBgovernor stated that, “If inflationary pressures ease, I would support keeping policy rates unchanged,”pulling back expectations for earlier rate hikes in the U.S. and sending the dollar/yen toyenandsince1month lows not seen since 8/3.

【9/4Market View