Dollar-yen stabilizes near 153 after U.S. sentiment data

  • Dollar-yen stabilized near 153.47 yen after recovering from an early New York decline.
  • The University of Michigan sentiment index registered 47.8, below the 51.0 consensus forecast.
  • EUR/USD rose to $1.1614 as higher German long-term yields supported the euro.

Dollar-yen stabilized in the mid-153 yen range in New York trading on September 11 after briefly falling to 153.24 yen, with the week's 152.89 yen low acting as visible near-term support. The pair traded at 153.47 yen at midnight, little changed from 153.48 yen at 10 p.m., after U.S. 10-year Treasury yields recovered toward 4.94% from the 4.90% range. The preliminary September University of Michigan Consumer Sentiment Index fell to 47.8, below the 51.0 consensus forecast, while one-year and five-year inflation expectations exceeded forecasts. The mixed report produced limited currency-market reaction, as the inflation data supported expectations that the Federal Reserve will keep monetary policy tight for longer. EUR/USD rose to $1.1614 and EUR/JPY recovered to 178.25 yen as higher German long-term yields supported the euro. Earlier in Tokyo, dollar-yen had held near 154 yen before the U.S. August Consumer Price Index release, while Gaitame.com data showed Japanese retail investors increased sell positions. The pair's subsequent move below 154 shifted market attention toward the 152.89 yen support level, U.S. yields and diverging European and U.S. monetary-policy expectations.

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