FOMC hawkish rate cut causes USD/JPY to rise to 154.85 yen.

【12/18Market Overview

In Tokyo time, USD/JPY rose to the 153.79 level on the dollar-buying at the fixing, but as the Nikkei stock average weakened, it fell back to around 153.32. In European time, with the FOMC looming, position-adjustment dollar buying led to a recovery to the 154 range.153.79 153.32 In European session, the dollar/yen,on the eve of the FOMC,154 yen area recovered.In NYtime,the FOMC decided on a 0.25%FOMC cut as expected by the market. Also releasedmembers’ interest-rate projections (dot plot) showed the median at the end of 2025 was raised, and the number of rate cuts was revised down from four anticipated in September to2 cuts, nearly halving. PowellFRBChair Jerome Powell’s press conference was hawkish, stating that “the rate cut decision this time was a tight decision,” that the committee may become more cautious about further adjustments, that rates are quite close to neutral, and that a new phase of the rate-adjustment process has begun, which caused the USD/JPY to rise to154.85