US dollar strength… Dollar-yen breaks above the 155 yen level, prompting Japanese intervention < Bonds/Forex < Text of article

(New York = Yonhap Infomax) Correspondent Sunyoung Jeong = The value of the U.S. dollar showed strength.

Dollar-yen exchange rate tick chart

Yonhap Infomax

As the dollar-yen exchange rate broke above the 155 yen level for the first time since 1990, attention is focused on the Japanese foreign exchange authorities’ actual intervention in the foreign exchange market.

Market participants are paying attention to the strong U.S. economy as they wait for the U.S. first quarter gross domestic product (GDP) and March personal consumption expenditures (PCE) inflation to be released this week.

According to Yonhap Infomax (screen number 6411), as of 9:02 a.m. on the 24th (hereinafter US eastern time), the dollar-yen exchange rate in the New York foreign exchange market is 154.933 yen, 0.108 yen (0.070%) from the previous day’s New York market closing price of 154.825 yen. It went up.

The Euro-Dollar exchange rate was $1.06861, down $0.00167 (0.16%) from the previous price of $1.07028.

The Euro-Yen exchange rate was 165.56 yen, down 0.14 yen (0.08%) from the previous rate of 165.70 yen.

The dollar index, which reflects the dollar’s value against six major currencies, stood at 105.874, up 0.18% from 105.687 at the previous point.

The dollar is watching the relatively strong U.S. economy amid prospects of a soft landing.

On this morning, the dollar-yen exchange rate exceeded the 155 yen level at one point during the day.

The dollar-yen exchange rate once rose to 155.14 yen, but soon the level was lowered to 154.90 yen due to an influx of dollar sales.

While Japanese foreign exchange authorities are wary of intervention, the dollar-yen exchange rate is weighing the possibility of actual intervention.

Regarding the joint statement by the finance ministers of Korea, the United States and Japan the previous day, Japanese Finance Minister Shuichi Suzuki said, “It can be said that an environment that can lead to an ‘appropriate response’ has been created.”

The Euro-Dollar exchange rate fell to the $1.067 level during the day and is showing support again at the $1.069 level.

European indicators have not deteriorated significantly either.

The Ifo business environment index, which shows German companies’ economic judgment, rose for three consecutive months and exceeded market expectations. According to Ifo Economic Research Institute, the business environment index in April was 89.4.

Market participants are paying attention to the possibility of actual intervention by Japan’s foreign exchange authorities and are waiting for the US economic indicators to be released the next day.

According to expert estimates compiled by the Wall Street Journal (WSJ), the preliminary US first quarter GDP growth rate is expected to be 2.4%, lower than 3.4% in the fourth quarter of last year.

Nevertheless, the U.S. economy was expected to continue its strong trend given that the level of GDP would not slow down significantly.

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This article was published at 22:36 on the Infomax financial information terminal.