Dollar/Yen continues to fall, pressured by expectations of earlier Bank of Japan rate hikes and falling U.S. interest rates, around the low-149s.

【2/20Market Overview

In Tokyo time, USD/JPY moved lower on expectations of Bank of Japan rate hikes and declines in the Nikkei average. It fell through the previous day’s low of151.24yen, briefly150.11yen. Also, BOJ Governor Ueda met with Prime Minister Ishiba and after the meeting said, “Exchanged views on economic and financial developments,” and “no such discussion about long-term rates.” In European hours, USD/JPY briefly hit149.95yen, a level not seen since last12month9day, and after a round of buying, climbed back to150.43yen. In NY time, when U.S. Treasury Secretary Yellen hinted that issuing more long-term U.S. debt was “still far off,” U.S. Treasuries rose and U.S. yields fell, leading to broad dollar selling.2In February, weak results from U.S. economic indicators such as the Philadelphia Fed manufacturing index pushed USD/JPY temporarily to149.39yen, a level not seen since last12/6, marking about2months and a half lows.