Strengthening dollar puts yen within striking distance of 150

LONDON, Oct 2 (Reuters) – The dollar strengthened on Monday on expectations that U.S. interest rates will remain high for an extended period, while the yen fell to a one-year low of 150 yen to the dollar, sending traders into the yen. We paid attention to market trends. Intervention by Japanese authorities.

The yen fell to 149.83 yen to the dollar, an 11-month low and neared 150 yen, which some traders believe could prompt Japanese government intervention to support the currency. Ta.

“For the yen to rotate sustainably, the Bank of Japan needs to move away from its very accommodative monetary policy,” said Dane Chekov, senior currency strategist at Nordea.

“I think there is a high possibility that the yen will break above 150 yen to the dollar, but if verbal intervention is not accompanied by action, the dollar-yen pair could reach 155 yen.”

A summary of opinions from the Bank of Japan’s September meeting released on Monday showed policymakers discussing various factors to consider when ending ultra-easy monetary policy, while financial advisor Shunichi Suzuki The minister stated that the government is “keeping a close eye on exchange rate trends with strong policy measures.” Sense of crisis”.

In broader currency markets, the pound was last down 0.4% at $1.2158, having fallen nearly 4% against the dollar in the third quarter.

The euro fell 0.4% to $1.0535, its worst performance in a year, after ending the previous quarter 3% weaker as the relative divergence between the US and European economies was reflected in the foreign exchange market. It became.

Manufacturing activity in the euro zone and the UK remained severely depressed in September, final figures revealed on Monday.

The U.S. dollar index recently edged back toward a 10-month high of 106.84, after posting its best quarterly performance in a year on persistently hawkish Fed rhetoric and rising U.S. Treasury yields. The final score was 106.51.

The yield on the 10-year U.S. Treasury rose another 6 basis points to 4.6289% on Monday, close to the 17-year high of 4.688% hit last week.

“The dollar is better than the euro or the pound or something like that at the moment,” Kiwibank chief economist Jarrod Kerr said. “I think the dollar will get a little more support.”

Although the U.S. Congress passed a stopgap funding bill late Saturday with overwhelming support from Democrats to avert a partial federal government shutdown for the fourth time in a decade, analysts said the long-term market The impact on it was ignored.

“Historically, closures are noise,” Nordea’s Chekov said. “They don’t have a big impact on the market or the economy.”

Elsewhere, the Australian dollar fell 0.6% to $0.6395 and the New Zealand dollar fell 0.4% to $0.5972 as traders awaited central banks’ interest rate decisions this week.

Among cryptocurrencies, Bitcoin traded above $28,000 for the first time since August, after a weekend rally that pushed it to $28,492, its highest since Aug. 17.

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