U.S. PPI (Producer Price Index) forecast undershoots, but USD/JPY hits new highs.
【4/11Market Overview
In Tokyo time, USD/JPY faced selling from expectations of government and BOJ intervention, as well as selling by domestic export companies, and temporarily152.75yen declined. However, after the initial selling exhausted, there was strong buying interest on dips, and USD/JPY recovered to the153yen level. Also, although there were cautious remarks about a weaker yen from Finance Minister Kanda and Finance Minister Suzuki, market reaction was limited. In European trading, the prior day4/10CPI in the U.S.CPIsurprise-led dollar buying continued, and USD/JPY rose beyond the prior day high to153.28yen. In NYtime,3month U.S.PPIwas expected to be0.3% vs0.2% for the previous month, and year-on-year expected2.2% vs2.1%, thus underperforming expectations, and USD/JPY fell to152.79yen. Afterward, U.S.10year Treasury yields rose, leading dollar buying. USD/JPY climbed to1990sJuneto the highest level since153.31yen.