Dollar-yen rises to the mid-143s as expectations grow for easing U.S.-China trade friction.

【4/23Market Overview

In Tokyo time early morning, when President Trump said he had no plans to dismiss Jerome Powell, the Fed Chair, the dollar-yen rose to 143.22 yen. After the initial buys, selling dominated, and with expectations of dollar sales by Japanese exporters, it fell to 141.67 yen. Thereafter it oscillated around 142 yen. In European trading and after-hours in New York, as Dow futures and European stocks rose sharply, risk appetite improved, leading to yen selling and dollar buying, with dollar-yen rising to 142.79 yen.New Yorktime, the Wall Street Journal reported that the U.S. government was considering lowering tariffs against China to ease the trade war, and that tariffs against China could be reduced to between50-65%. This raised expectations for a Sino-U.S. trade friction resolution, and dollar buying led the U.S. stock gains. After Treasury Secretary Steven Mnuchin stated that “the United States will continue a strong dollar policy,” and that “there is no intention to pursue a specific currency target in Japan-U.S. negotiations,” while expecting Japan to respect the G7 agreement, the dollar-yen rose to143.58yen.

【4/24Market View