Dollar-Yen Plunges as Early Fed Rate Hike Bets Fuel Dollar Buying
The dollar-yen exchange rate traded in the upper 154 range against the yen in Tokyo foreign exchange trading on November 11th. This marked a decline of more than 1 yen from the previous day's closing price. The rise in U.S. long-term interest rates, driven by expectations of an early rate hike by the Federal Reserve, prompted dollar buying and yen selling.
As of 10:00 a.m., the dollar-yen pair traded at 154.55-57 yen, down 1.15 yen from the previous day's closing price. The euro traded at 179.49-51 yen, up 0.94 yen against the Japanese currency.
Market participants noted that safe-haven dollar buying driven by escalating Middle East tensions was also observed. However, dollar buying tied to higher oil prices temporarily subsided as NYMEX crude oil futures (WTI) stalled in the $103-per-barrel range.