Dollar selling and yen buying prevailed as vote counting in the US midterm elections progressed, but market volatility subsided in the afternoon and the dollar-yen rate recovered to the ¥158 range. The Nikkei Average fell sharply at one point before showing signs of a rebound.
The dollar-yen rate rose to the ¥158.70 range yesterday, then opened this morning at around ¥158.74. As reports emerged that the Democratic Party was ahead as vote counting in the US midterm elections progressed, dollar selling and yen buying spread, and the dollar-yen rate fell to ¥157.41 before noon. The Nikkei Average fell sharply by more than ¥3,000 at one point in the afternoon session, with some risk-averse yen buying observed.
As the overall result became clear, market volatility subsided. As the Nikkei Average showed signs of rebounding from its lows, the dollar-yen rate recovered to the ¥158 range.
The euro-dollar rate rose on dollar selling, climbing from $1.1187 to $1.1263 before being sold down again to around $1.1225. The pound-dollar rate also rose from $1.3408 to $1.3470 before consolidating in the $1.3440 range.
Among the yen crosses, rates were somewhat firm in the morning, but as the dollar-yen rate plunged, the euro-yen rate rose to ¥177.82 before falling back to the ¥177.10 range. It rebounded to around ¥177.60 in the afternoon, while the pound-yen rate recovered to the ¥212.70 range after falling to ¥212.13.