Dollar/yen rose to 151.95 yen after a favorable ADP employment report, then stalled as the ISM non-manufacturing PMI came in below expectations.

【4/3Market Overview

Tokyo time, dollar/yen slid to around 151.44 yen on the back of the Nikkei’s decline as risk aversion prompted yen buying,151.44and then rebounded toward the mid-151 level at the fixing. During European trading hours, amid talks of yen-buying intervention by the government and the Bank of Japan, the dollar/yen rose gradually toward151.75yen.In New Yorktime,3monthADPemployment data showed18.4ts (thousand) increase versus the expected14.8thousand increase, lifting the dollar/yen to151.95yen. Thereafter,3monthISMnon-manufacturing index came in at51.4versus the expected52.7, causing the dollar/yen to retreat to151.57yen. PowellFedChair Jerome Powell, in a speech, emphasized that given the economy’s strength and progress on inflation, there is time to base policy decisions on forthcoming data and did not stress rushing a rate cut. The dollar/yen then retraced to close around151.68yen.