In the morning Tokyo foreign exchange market, the dollar rose slightly to the upper 160 yen range, updating its highest level in about a month since late July. Rising crude oil futures prices due to instability in the Middle East and US long-term interest rates reaching a roughly three-year high strengthened dollar buying pressure. The dollar-yen pair briefly rose to 160.39 yen, and US long-term yields reached the 4.8% level, a level not seen since November 2023. Motonari Sakai of Mitsubishi UFJ Trust and Banking noted that the Bank of Japan's September rate hike is widely expected, and the market's reaction to comments by BOJ board member Hajime Takata was limited. He also said that with waning concerns about coordinated currency intervention by Japan and the US, and following Federal Reserve Chair Powell's speech at Jackson Hole, the dollar is likely to remain prone to appreciation.
Mitsubishi UFJ Financial Group, Inc.US long-term yields hit 4.8%, a three-year high, indicating higher policy rates.
