On the afternoon of the 7th, the yen exchange rate in the Tokyo foreign exchange market rebounded. As of 14:00, the exchange rate of the US dollar against the yen was 154.18 to 154.20 yen. Compared with the data at 17:00 the previous day, the yen fell by 25 points and the US dollar rose. Around 13:30, the yen rebounded to around 153.94 yen, indicating that the decline was further narrowed. It is speculated that the actual demand buying in the country, especially the yen buying and dollar selling activities of export companies, had an impact on this trend.
Market participants said, “Due to the wait-and-see sentiment in the market after the US presidential election, trading activities today appear cautious, and exchange rate fluctuations are relatively large under low trading volume.” (Traders from domestic banks). In addition, as the results of the US Federal Open Market Committee (FOMC) meeting are about to be announced, the press conference of Federal Reserve Chairman Powell is also scheduled today, so the accumulated yen selling and dollar buying positions yesterday are more likely to be adjusted, and the trend of yen buying and dollar selling is more obvious.
