The dollar came under initial selling pressure as expectations for an early rate hike by the FRB receded, but USD/JPY rose from ¥157.70 to ¥158.18 in the Tokyo market. EUR/JPY fell, while the Nikkei Average closed at ¥64,916.70, down ¥407 from the previous day.
USD/JPY firmed slightly in Tokyo trading on the 19th. The dollar came under initial selling pressure against a backdrop of receding expectations for an early FRB rate hike, but USD/JPY rebounded from around its low of ¥157.70 and turned higher. As euro selling intensified into the afternoon, USD/JPY recovered to the ¥158 range.
EUR/JPY fell from ¥177.61 to ¥176.92, while EUR/USD declined from $1.1234 to $1.1186. As of 5 p.m., indicative levels were around ¥158.10–¥158.20 for USD/JPY and ¥177.10–¥177.20 for EUR/JPY.
The Nikkei Average opened at ¥64,819.56, reached a high of ¥65,067.80 and a low of ¥63,831.78, and closed at ¥64,916.70, down ¥407.59 from the previous day, in a session marked by pronounced losses.
Among economic indicators and comments from officials, China's GDP growth rate, retail sales and industrial production were cited as market focal points, and their impact on the Nikkei's movements was observed. The Takaichi administration's policy of curbing yen weakness and the Bank of Japan governor's outlook for price trends are also key market focuses.