Following remarks by Fed Chair Powell, expectations of a U.S. rate hike rise, and the dollar/yen climbed to as high as 160.20 yen.

[8/28Market Overview]

During Tokyo hours, in the Tokyo fixing on the effective “Goto day” at week’s end (5/10th days), dollar buying was observed in USD/JPY, pushing it up to159.56yen. During European hours, USD/JPY edged higher ahead of a speech byFRBChair Waller.NYhours: In his Jackson Hole speech,Chair Waller said, “Inflation indicators do not suggest that the trend has improved significantly,” “If inflation does not move promptly toward2% there is more we need to do,” and “It is hard to characterize broader financial conditions as restrictive.” As expectations for US rate hikes increased and broad dollar buying led, USD/JPY temporarily rose to160.20yen, updating the highest level since7/31. However, around the160yen handle, caution about potential FX intervention by Japanese and US monetary authorities persisted, and gains stalled somewhat into the close.

[8/31Market Outlook]