[Seoul=Newsis] Reporter Jae-Jun Lee = As the US long-term interest rate rose as the Federal Reserve raised the key interest rate for the first time in three years at the Federal Open Market Committee on the 17th, the yen sells ahead as the US-Japan interest rate gap widens. = Started dropping to the late 118 yen range.
In the Tokyo foreign exchange market, at 8:30 a.m. that day, 1 dollar = 118.84 to 118.85 yen, down 0.47 yen from 5 p.m. the previous day.
In the New York market the previous day, the yen exchange rate fell to 1 dollar = 119.12 yen, the lowest since February 2016, and at 7:20 am on the 17th, 1 dollar = 119.00 yen.
At 9:40 a.m., the yen exchange rate was 0.62 yen, down 0.52%, and 1 dollar = 118.99 to 119.00 yen.
In the Sydney foreign exchange market, Australia, the yen exchange rate took over the flow of overseas markets and started down 0.40 yen from the previous day to 1 dollar = 118.70 to 118.80 yen.
Earlier, on the 16th, in the New York foreign exchange market, the yen fell for the 8th trading day, down 0.45 yen from the 15th, closing at 1 dollar = 118.70 ~ 118.80 yen.
With the announcement of the FOMC results, there was growing speculation that the US interest rate hike would accelerate, and as the difference in the direction of the US-Japan financial policy became clear, the selling of the yen and the buying of the dollar increased.
In the policy rate forecast, seven key rate hikes are expected this year, including this one. It was the third time at the FOMC last December.
Federal Reserve Chairman Jerome Powell said at a press conference that the U.S. economy is doing very well to respond to financial austerity.
The long-term interest rate rose 0.10% from the previous day to 2.24%, the highest level since May 2019.
In Tokyos foreign exchange market, the yen is depreciating against the euro. At 9:37 a.m., 1 euro = 131.35 to 131.36 yen, 1.63 yen lower than the previous day.
The euro is rising against the dollar. At 9:37 a.m., 1 euro = 1.1038 to 1.1040 dollars, an increase of 0.0079 dollars from the previous day.