The dollar strengthened against the yen in the New York foreign-exchange market, briefly intensifying the yen's decline, after U.S. initial jobless claims fell unexpectedly. The rise in prices in the ISM Manufacturing Index and reports concerning the situation in the Middle East also affected the market.
1) In the New York foreign-exchange market on the 1st, USD/JPY fell to ¥157.23 before rising to ¥158.25 and closing at ¥158.05. Yen buying intensified amid concern over intervention to correct the yen's decline, after which the unexpected decline in U.S. initial jobless claims was reported.
2) EUR/USD fell from $1.1311 to $1.1215 and closed at $1.1245. EUR/JPY fell from ¥178.58 to ¥176.77. USD/CHF moved from CHF0.8360 to CHF0.8292.
3) Additional factors included a rise in prices in the September ISM Manufacturing Index. Reports said the U.S. government had asked the European Union to make an emergency release of diesel fuel reserves, and warnings of an export ban were also reported.
4) President Trump warned of the possibility of escalating attacks on Iran, while reports said the U.S. government would deploy an aircraft carrier to the Middle East in November. These developments contributed to higher crude oil prices.
5) Overall, factors supporting dollar buying, weaker European currencies and concern over yen-buying intervention affected the market.