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Yen Weakens to Mid–156 per Dollar as Traders Position for Fed Meeting

Rising U.S. long‑term yields are steering flows toward the dollar on expectations of a slower Fed cutting path.

Overview

  • The yen traded around ¥156 per dollar in Tokyo and New York, with moves into the high‑¥156s as dollar buying gained traction.
  • Market participants cited the wider JapanU.S. rate differential after U.S. long‑term yields climbed, reinforcing pressure on the yen.
  • Investors adjusted positions ahead of the Dec. 9–10 FOMC, with many expecting the Fed to signal caution on the pace of future rate cuts.
  • U.S. stocks fell for a second day, with the Dow down about $215 on Dec. 8 and $179 on Dec. 9 as traders braced for the Fed’s guidance.
  • Tokyo shares swung on Dec. 10, briefly topping 51,000 before reversing as semiconductor names slid, while traders also monitored BOJ Governor Ueda’s remarks for yen cues.