In Tokyo trading on the morning of the 7th, the yen fell to the mid-¥158 range against the dollar. Euro short-covering prompted yen selling, which spilled over into the dollar.
In morning trading, the dollar rose to ¥158.45–46, with the yen trading around 35 sen weaker against the dollar than the previous day.
The morning trading ranges were ¥158.05–158.49 for dollar-yen, ¥177.93–178.31 for euro-yen and $1.1246–1.1263 for euro-dollar. Some market participants said dollar buying was prevailing ahead of the 10 a.m. fixing.
The yen’s decline was attributed to euro short-covering, prompted by easing concerns over French fiscal conditions, which led to yen selling, as well as increased yen selling and dollar buying by domestic importers. The view remains prevalent in the market that selling pressure on the yen, driven by the interest-rate differential between Japan and the United States, remains strong.