The yen edged back to the upper ¥157 range. Higher oil prices and expectations for higher U.S. interest rates weighed on the yen, while the euro remained weak against the stronger dollar. TDK announced a prototype of retinal-projection smart glasses.
In the Tokyo foreign-exchange market on the 5th, the yen weakened by 6 sen against the previous weekend, with the dollar trading at ¥157.63–¥157.66. Crude oil prices remained elevated amid uncertainty over the situation in the Middle East, while Japan’s deteriorating trade balance encouraged yen selling and dollar buying. Crude oil futures remained elevated, with U.S. crude oil futures trading at around $90 a barrel.
The U.S. employment report for September, released the previous week, showed nonfarm payroll growth below market expectations and a rise in the unemployment rate. Expectations of an additional Fed rate hike in October receded, but expectations of another rate hike before year-end remained strong. The 10-year U.S. Treasury yield traded at around 5.26%.
The euro fell against the dollar for a fourth consecutive week, capped near $1.116 per euro against a backdrop of fiscal and political concerns in France. The yen remained relatively firm against the euro, while against the dollar it continued to be affected by the euro’s weakness.
In the technology sector, TDK developed a prototype of smart glasses that project images directly onto the retina and plans to exhibit it at CEATEC. The new technology, called a meta-optics mirror, has a flat form and may overcome some of the limitations of conventional technology.