In the Tokyo market on the 2nd, USD/JPY was unable to extend gains, although selling around ¥158 remained in focus, and was pushed back from the mid-¥157 range toward the upper ¥157 range. The pair rose to ¥157.99 in the afternoon, but remarks by the finance minister warning against yen weakness and the psychological ¥158 level acted as a drag.
In the Tokyo market on the 2nd, USD/JPY struggled to rise as yen buying for risk aversion following the previous week's stock-market decline receded. The pair traded in the mid-¥157 range in the morning before rising to ¥157.99.
EUR/JPY rose from ¥175.71 to ¥176.66, while EUR/USD rose from $1.1155 to $1.1202. The Nikkei 225 closed at ¥63,081.86, down ¥208.25 from the previous day.
Remarks by Finance Minister Katayama warning against yen weakness heightened market concerns about intervention, keeping the psychological ¥158 level in focus. China's October Manufacturing PMI was 52.0, compared with 52.1 previously and a forecast of 52.0, broadly in line with expectations.