The dollar rose to the upper ¥157 range against the yen in the Tokyo market on the morning of the 27th. Real-demand buying and the rise in the Nikkei Average provided support.
In the Tokyo foreign exchange market on the morning of the 27th, the dollar-yen pair firmed in the upper ¥157 range as buying by real-demand participants prevailed. As of noon, the dollar was around ¥157.70, up approximately 57 sen against the yen from the previous day.
In overseas trading the previous day, dollar buying spread during European hours, lifting the dollar from the ¥157.10 range to the ¥157.60 range. Dollar buying continued through the middle of U.S. trading before losing some momentum. Buying emerged in early Tokyo trading, lifting the dollar to the ¥157.70 range after the fixing, but it subsequently returned to the ¥157.50 range.
Buying by importers and the rise in the Nikkei Stock Average were cited as supporting dollar-yen during the morning. The outlook is for the pair to trade in a narrow range in the mid-to-upper ¥157 range in the afternoon, without aggressive attempts to push higher.
The euro firmed against the yen after 9 a.m. and traded range-bound against the dollar. As of noon, the euro was at ¥176.15–16 and $1.1170–1.170.