With the prospect of an earlier rate hike fading from the Bank of Japan, the dollar/yen rose for a sixth straight day, approaching the 154 level.

【12/16Market Overview

In Tokyo time, the dollar/yen briefly fell to153.31yen, but buying interest returned on the back of gains in the Nikkei and expectations of dollar buying at the fixing. Subsequently, expectations of the Bank of Japan delaying its rate hike for the year rose, and the dollar/yen climbed to as high as153.97yen. In European hours, with the anticipation of an early BOJ rate hike fading, and with rising US 10-year Treasury yields, the dollar/yen rose past154yen, breaking through to154.47yen. In New York time, theNY time,12month US New York Fed Manufacturing Index and US Manufacturing PMIPMIflash were below expectations, while the US Services PMI flash came in above expectations, but the dollar/yen reaction remained limited, closing around154.09yen.