Trump mentions the yen’s depreciation as U.S. President; USD/JPY moves toward the mid-140s to 149 yen range.

【3/3Market Overview

In Tokyo time, the dollar/yen rose to151.02yen early in the session, but then fell to150.25yen as exporters selling dollar were observed at the start of the month. The rebound afterward was limited. In European hours, Prime Minister Aso? (truncated as original says "三村淳財務官" which translates to Deputy Finance Minister Jun Suginami? This seems to refer to a Japanese finance official) commented that rising wages exceeding price increases may have a negative impact from a weaker yen, so currency movements should be monitored. The dollar/yen then fell to149.94yen. Thereafter, short-covering by speculative funds led the pair higher. With European stocks and Nikkei futures in the night session holding up, dollar/yen rose to151.30yen. In the New York time,2month USISM Manufacturing PMI came in below expectations, and along with the decline in the 10-year U.S. Treasury yield, dollar selling dominated.10Afternoon, President Trump stated, "If Japan and China pursue currency depreciation, the United States will be put at an unfair disadvantage," and announced, "we will impose tariffs on such countries." Risk-off demand of yen buying accompanied by declines in U.S. stocks and Nikkei futures pushed the dollar/yen down to149.09yen.

【3/4Market View