Powell's dovish remarks as FRB chair caused the USD/JPY to fall to as low as 146.57 yen.
【8/22Market Overview
Tokyo time, the dollar/yen rose to around148.77yen on expectations of dollar buying by domestic demand and position adjustments ahead of Powell'sFRBchairman speech at the Jackson Hole Conference.In Europe, the dollar/yen hovered around the148yen level.In New York time, PowellFRBchairman said that, “policy can proceed cautiously due to labor market stability,” “tariffs could trigger long-term inflation,” and “inflation risks are skewed higher while employment is skewed lower,” while noting that, “the policy is in a tightening realm, which could justify a shift in risk balance and policy adjustment.” Market responded with dollar selling, bond buying (yields falling), and stock buying, interpreting as a signal of rate cuts resuming. The dollar/yen briefly fell to146.57yen.
【8/25Market View