Dollar-yen rebounds to 157.38 in New York as US data shifts rate bets
On September 30, the dollar-yen pair fell to 156.64 yen before rebounding to 157.38 yen at the close in New York trading, driven by shifting US rate expectations. The dollar weakened initially after the August PCE core price index came in below forecasts, reducing expectations of an October Fed rate hike. However, dollar buying resumed following an improvement in the September Chicago PMI and rising oil prices. The euro-dollar rose to 1.1380 before falling to 1.1332, while the euro-yen weakened to 178.01 then climbed to 178.57. Key US data included September ADP employment at +90,000, Q2 GDP finalized at +2.2% annualized, and the September Chicago PMI at 58.8, all exceeding expectations. Germany's September CPI reached a three-year high, supporting euro strength.