The yen hit a one-week low against the dollar, retreating from expectations of a significant rate cut by the US and waiting for employment indicators.

Updated on September 2, 2024, 11:32 JST (excerpt).
In the Tokyo foreign exchange market on the 2nd, the yen fell to the mid-146 yen level against the dollar at one point, marking the lowest level in a week and a half. The retreat of expectations for a significant rate cut in September, along with the calming of inflation and the resilience of consumption indicated by US economic indicators, led to buying of the dollar and selling of the yen, continuing the trend from the end of the previous week. However, the US market is closed on the 2nd, and the buying of the dollar has passed as market participants want to assess this week's US employment-related indicators.
Kumiko Ishikawa, Senior Analyst at Sony Financial Group, mentioned that the market has already priced in a 25-basis-point cut at the September Federal Open Market Committee (FOMC) meeting in the Fed Funds futures market, and there is a sense that the market is adjusting its expectations ahead of the exchange rate market, taking into account the confirmation of the indicators for a 50-basis-point cut, and waiting for the US employment statistics.