Dollar-Yen Pauses at 160 as Markets Await Key U.S. Indicators

The dollar-yen pair traded within a narrow range of 159-160 on September 1, as market attention focused on key U.S. economic indicators and the Japan-U.S. finance ministers' meeting.

Rising U.S. long-term yields boosted dollar buying, causing the pair to rebound from around 159.63 in early Tokyo trading to 159.90 by afternoon.

Market consensus expects a modest decline in the August ISM Manufacturing PMI and slightly lower JOLTS job openings data, which could strengthen expectations for an earlier Federal Reserve rate hike and test the upside above 160.

The Japan-U.S. finance ministers' meeting highlighted the prevailing view that a BOJ rate hike is nearly certain on September 18, unless the meeting's substance suggests a faster pace of rate hikes than anticipated.