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[NQN New Week = Rie Yokouchi]The yen exchange rate fell slightly on the New York foreign exchange market on the 18th for the first time in 3 days, and the yen depreciated by 05 yen and the dollar strengthened by $ 1 = 108.85-95. yen … The US long-term interest rate rose to the level for the first time in a year and two months, and selling yen and buying dollars were predominant as a clue to widening the rate differential of interest between Japan and the United States.
The 10-year bond yield, an indicator of long-term interest rates in the US bond market, temporarily increased to 1.75%. The Federal Open Market Committee of the United States (FOMC) said yesterday that the zero interest rate policy is expected to continue until 2023. With the willingness of the chairman of the Federal Reserve, Powell, to tolerate a temporary increase in the inflation, there is widespread speculation that the accelerated recovery of the US economy will intensify the upward trend in prices.
The Philadelphia Fed’s March Manufacturing Companies Index was 51.8, a sharp increase from 23.1 last month. It was the highest level since 1973, showing the recovery momentum in US manufacturing. Buying dollars against major currencies such as the euro became dominant and the yen was also sold.
However, the yen’s downside was firm. On the afternoon of the 18th of Tokyo, the electronic edition of the Nihon Keizai Shimbun reported that the Bank of Japan would consider widening the range of allowable fluctuation of long-term interest rates at the monetary policy meeting held until the 19th. perceived that the Bank of Japan accepted the increase in interest rates and supported the yen.
All three major US stock market indices closed lower. It also made it difficult for investors to take investment risks and invited them to buy the yen, which is considered a low-risk currency. The slowdown in long-term interest rates in the United States also contributed to the reluctance to lower the yen.
The low price of the yen that day was 109.22 yen and the high price was 108.83 yen.
The yen rallied against the euro and closed at 129.70-80 yen, which is 65 yen higher and the euro weaker than the previous day.
The euro fell against the dollar and closed at $ 1.1910-20, which is $ 0.0065 less than the day before. The sale of euros and the purchase of dollars were predominant due to the increasing interest rate differential between the US and Europe. The euro was also affected by the growing belief that the recovery of the European economy would slow down due to the spread of the new coronavirus and the delay in the spread of vaccines.
The euro was low at $ 1.1907 and high at $ 1.1947.
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