[Mercato USA]Dollar in the low range of 150 yen, the weakest yen for the first time in 32 years – S&P 500 continues to fall – Bloomberg

On the 20th in the US financial market, stocks continued to decline and government bond yields increased. The hawkish remarks from U.S. financial officials were aware.The Overnight Index Swap (OIS) market, which shows the market’s expectations of the U.S. policy rate, expects rates to reach the first half of 2023.reaches 5% and reaches peaksIncorporated the view of

The yen fell as low as 150 yen per dollar, hitting its lowest level in 32 years since 1990.

The S&P 500 Index fell 0.8% from the previous day to 3665.78. Earlier in the day, the stock rose more than 1%, but quickly disappeared after remarks from Philadelphia Fed Chairman John Harker came in. The Dow Jones Industrial Average fell $ 90.22, or 0.3%, to $ 30,333.59. The Nasdaq Composite Index fell 0.6%.

Harker said the Fed is likely to raise interest rates to “well above” 4% by the end of the year to fight inflation and keep it low.indicateFed Governor Cook said interest rates must continue to rise to keep inflation in check.ideashowed it.

“The stock market is not out of the woods yet,” said Fawad Razaczada, a market analyst at Citi Index. “In an environment of high inflation and low growth, there are fears of further tightening of monetary policy, which means aggressive stock buying is discouraged, even with current business,” he said.

　　Teslaand IBM’s financial results also attracted the attention of investors. Some market observers have said that expectations had been lowered so much before the start of the earnings season that the odds of a better-than-expected performance have increased.

US Treasuries plummeted dramatically. At 4:21 pm New York time, the 10-year yield increased 10 basis points to 4.24%.

In the foreign exchange market, yen sales accelerated on the afternoon of New York time. Against the backdrop of widening interest rate differentials between Japan and the United States, the yen plunged to a low of 150 yen against the dollar. Japanese authorities are becoming increasingly cautious about another round of yen-dollar buying / selling.

Accelerating the depreciation of the yen to its lowest level since 1990 – 150.25 yen in New York time

As of 4:21 pm New York time, the dollar was up 0.2% against the yen to ¥ 150.17. The euro was up 0.1% against the dollar to $ 0.9783 per euro. The Bloomberg Dollar Spot Index, which tracks the movements of the dollar against the 10 major currencies, fell by 0.1%. The pound is for British Prime Minister Trussannouncement of resignationAs a result, it temporarily increased by 1% against the dollar.

ING currency strategist Francesco Pesol said, “It is a difficult situation for the Japanese authorities. They may want to avoid sending the message that 150 yen or another level is an unacceptable line. Such volatility may not be possible. It is a risky move. in an unstable environment, “he said. “However, if the currency rises above 150 yen at one time, it could lead to an increase in volatility in the direction of the yen depreciation, which the Japanese authorities were trying to avoid in the first place.

“Japanese policymakers have gotten themselves into a difficult situation. The foreign exchange intervention has not had the lasting effect that everyone thought it would have,” said Stuart Bennett, G10 head of currency strategy at Banco Santander. “It is very likely that the intervention will repeat itself, as has happened in the past.

Crude oil futures in New York remained unchanged. The purchases spread in the morning against the backdrop of optimism that China could shorten the mandatory quarantine period of the new coronavirus for people entering the country, but the increase was reduced due to the decline in the stock market.

“The oil market is still finding direction,” said Rob Howarth, senior investment strategist at US Bank Wealth Management. “Until we actually see a trend forming in global economic activity, the market may be limited to range.”

West Texas Intermediate (WTI) futures for December delivery on the New York Mercantile Exchange (NYMEX) closed at $ 84.51 a barrel, down 1 cent from the previous day. The November contract, which was the last day of trading, rose 43 cents, or 0.5%, to close at $ 85.98. London ICE’s December delivery of North Sea Brent Brent fell 3 cents to $ 92.38.

The New York gold futures market rebounded slightly. Gold futures for December delivery on the New York Mercantile Exchange (COMEX) closed at $ 1,636.80 an ounce, up 0.2% from the previous day. The dollar index fell slightly today. Spot gold fell 0.2% to $ 1,626.44 at 3:23 pm New York time.

Outflows from gold-linked exchange-traded funds (ETFs) have accelerated, a bearish signal for gold. Gold holdings via ETFs fell 12.5 tons on Monday, the largest one-day drop since March 2021, according to a preliminary tally from Bloomberg.