Key Facts
• On September 2, yen and British pound weakened in the NY forex market.
• Dollar/yen rose 0.84% to 148.40, the highest since August 1.
• British pound fell 1.24% to $1.3375, hitting a 3.5-week low.
• UK 30-year bond yield surged to 5.697%, the highest since May 1998.
• MUFG analyst Lee Hardman cited political uncertainty as a key factor.
• Bank of Japan’s deputy governor avoided hawkish signals, spurring yen short positions.
• UBS strategist Vasily Serebryakov attributed dollar strength to external negative factors.
• August ISM manufacturing PMI rose slightly to 48.7 from 48.0 in July.
• Dollar index increased 0.74% to 98.37; euro fell 0.61% to $1.1637.
• Dollar/yen NY closing price: 148.33/148.34; euro/dollar: 1.1638/1.1642.
Summary
The New York forex market on September 2 saw the yen and British pound decline due to fiscal concerns, while the dollar strengthened against some currencies. The dollar/yen pair rose 0.84% to 148.40, marking its highest level since August 1. The British pound dropped 1.24% to $1.3375, reaching a 3.5-week low, as UK 30-year bond yields climbed to 5.697%, the highest since 1998. Analysts highlighted political uncertainty and fiscal concerns as key drivers. The Bank of Japan’s lack of hawkish signals encouraged yen short positions, while external negative factors supported the dollar. The August ISM manufacturing PMI showed a slight improvement, but its impact on the dollar was minimal. The dollar index rose 0.74% to 98.37, while the euro fell 0.61% to $1.1637. Analysts anticipate the upcoming U.S. jobs report on September 5 to shape the dollar’s trajectory in the coming weeks.
