The FOMC kept policy rates unchanged for three consecutive meetings, and the dollar/yen rose briefly to 144.00.

【5/7Market Overview

In Tokyo time, the USD/JPY rose to around143.31yen as expected after news that the U.S. and China would hold a ministerial meeting in Switzerland on trade issues over the weekend, raising expectations for easing U.S.-China trade frictions. Then it hovered around143.00yen. In European hours, the USD/JPY remained nearFOMCawaiting event,143.00yen with little movement. In New York time, reports that President Trump said he would not cut tariffs to pressure China into negotiating led to a downturn in U.S. equities and briefly pushed USD/JPY to around142.90yen, but a rebound followed. The FOMC, as market expectations suggested, kept the policy rate at4.25-4.50％. In its statement, it noted that “uncertainty surrounding the economic outlook has increased,” and “risks of higher unemployment and inflation have risen.” Chair Powell said in a press conference that “the economy remains solid,” “the committee is in a position to wait for more clarity for the time being,” and there is no need to rush to cut rates, signaling a cautious stance toward an early rate cut. Following these, USD/JPY rose to around144.00yen.

【5/8Market View