In the foreign exchange market on the 10th, the yen stalled in the lower ¥158 range. With the release of U.S. October CPI approaching, investors refrained from making significant changes to their positions and continued to wait for clarity.
In the morning session in Tokyo, the dollar edged higher on the Nikkei Stock Average's sharp rise and real-money buying, with the yen weakening and the dollar strengthening from the previous day to ¥158.02–158.03 as of noon. Trading was subdued in the afternoon amid a lack of fresh catalysts, and the dollar settled around ¥157.96 as of 2 p.m.
During overseas trading hours, the yen at one point strengthened to the ¥157.60 range. The backdrop was a decline in crude oil futures on hopes for progress in U.S.-Iran talks, which eased inflation concerns. The yen subsequently weakened back to the ¥158.10 range as share prices rose. During London trading hours, it moved within a narrow range from around ¥158 to the ¥158.10 range.
Market participants emphasized their desire to assess the U.S. CPI results. A major Japanese bank said it would be difficult to move aggressively, and many market participants expect trading to remain directionless as various factors offset one another. Among the major currencies, the yen's weakening against the euro and the euro's strengthening against the yen stood out, with yen selling and euro buying prevailing against the euro.
Some market participants expect the dollar to move sharply depending on the U.S. CPI release, and the tug-of-war between crude oil prices and the market through movements in long-term U.S. interest rates is expected to continue. With limited positive factors mixed in with other developments, a wait-and-see stance is expected to remain dominant.