The yen and dollar strengthened in Tokyo morning trading against a backdrop of euro weakness. Concerns over France's fiscal position and the economic outlook weighed on the euro, causing movements in major currencies to become unsettled.
The yen and dollar were bought in Tokyo morning trading, with the euro observed falling against both the yen and the dollar. Euro/dollar fell to around $1.1185, while euro/yen declined to around ¥176.64.
Sterling/dollar was around $1.3209, Australian dollar/dollar around $0.6938, and the yen was firm against the dollar. Sterling/yen traded around ¥208.38 and Australian dollar/yen around ¥109.49.
Dollar/yen briefly weakened to around ¥157.44 before trading in the upper ¥157 range, with buying of the yen and dollar continuing intermittently. The spread between German and French 10-year government bond yields reached its highest level in around 14 years, while selling of French government bonds was pronounced.