Dollar/yen rose temporarily to 144.94 yen on observations of dollar buying in long fixings.

【6/27Market Overview

Tokyo time,6Tokyo metropolitan area consumer price index (CPI, excluding fresh food) came in below expectations, pushing the yen higher on expectations of a Bank of Japan rate hike to as high as144.81yen. However, with growing expectations for U.S. rate cuts, the yen was pulled back after the early rally to about144.20yen. In European hours, the USD/JPY fell to144.17yen, then, as U.S. 10-year yield rose, rebounded to the mid-144s.NYtime, with an eye on the potential postponement of the U.S. mutual tariffs deadline and sturdy U.S. stock performance, risk-on yen selling and dollar buying led. Ahead of the London fix, dollar buying pushed briefly to144.94yen. Note that the5th U.S. personal consumption expenditures (PCE) and personal income were below expectations, but thePCE price index (deflator), excluding volatile food and energy, rose more than expected month-on-month (monthly)0.2% vs. expected0.1%, year-on-year2.7% vs. expected2.6%

【6/30Market View