Dollar-Yen Traded Sideways Amidst Rate Hike Uncertainty

The dollar-yen pair traded in a narrow range around 157 yen per dollar on September 29, with little direction observed throughout the day. The pair oscillated between 157.21 and 157.58 yen, a range of just 0.37 yen.

Rising U.S. long-term yields weighed on the euro, causing EUR/USD to fall to $1.1355 before stabilizing at around $1.1368 per euro. Meanwhile, EUR/JPY faced significant upside pressure, falling from 178.88 to 178.66 yen per euro.

The Reserve Bank of Australia's (RBA) decision to raise its policy rate by 0.25 percentage points to 4.60% sparked volatility in the Australian dollar. Despite initial gains, AUD/JPY whipsawed down from 110.70 to 109.83 yen per Aussie.

Japanese stocks extended losses, with the Nikkei Stock Average closing down 396.35 points at 65,481.27. The TOPIX fell 70.87 points to 4,041.13, weighed by AI and semiconductor-related stocks, as well as ex-dividend day selling.