US PPI forecast downside and Nikkei futures decline weigh on dollar/yen, sending it down to the 141 yen level.

【9/12Market Overview

In Tokyo time, the USD/JPY rose to142.94yen amid gains in the Nikkei average. Then, Tadahiro Tamura, a BOJ policy board member, indicated that “in the latter half of the projection period, there is a need for at least1% in rate hikes,” sending the USD/JPY to142.25yen. In European trading, USD/JPY briefly rose to143.04yen but failed to hold above the143yen level, drifting without a clear direction around142yen. In New York time, the8month U.S.PPI (Wholesale Prices Index) fell short of expectations on both the headline and core measures year over year, sending U.S. 10-year Treasury yields lower and weighing on the dollar. Following a drop in the Nikkei futures during the night session, USD/JPY fell to141.91yen. Afterwards, as U.S.10year yields reversed to rise, USD/JPY climbed toward142.66yen, but the gain was modest. Also, with broad dollar weakness against the euro, USD/JPY moved to5:30minutes beforethe close141.72yen.