Dollar/yen, pressured lower by government officials' cautionary steps to restrain yen weakness and ensuing adjustments.
【12/20Market Overview
Tokyo time, USD/JPY rose to as high as 157.92 yen after the Bank of Japan's early rate-hike expectations faded, driven by dollar buying on the end-of-week fixing. Thereafter, amid remarks from Finance Minister Katō and Finance Chief Motoaoi about suppressing yen depreciation, the pair fell to 156.84 yen. In European hours, USD/JPY saw selling driven by position adjustments ahead of the weekend; market participants noted heightened caution about intervention by the government and the BOJ in response to yen weakness.157.92yento156.84yen.In New York time, with the core deflator for PCE (personal consumption expenditures) excluding volatile food and energy coming in below expectations, the 10-year U.S. Treasury yield fell and USD/JPY dropped to 155.94 yen.NYtime,11monthPCE(Personal Consumption Expenditures) Deflator,excludingvolatile food and energycore deflator came in below expectations, sending the U.S. 10-year yield lower and pushing USD/JPY down to155.94yen.