Dollar-yen remained in a narrow range in the upper ¥157 range, with upside capped ahead of the ¥158 level. Finance Minister Katayama's remarks reaffirmed the authorities' stance against yen depreciation, heightening concerns about intervention.
During Tokyo trading hours on the 2nd, dollar-yen traded in the upper ¥157 range, rising from ¥157.48 to ¥157.97 in the morning and reaching ¥157.99 in the afternoon. Upside was capped at times ahead of the ¥158 psychological level.
Finance Minister Katayama made remarks cautioning against yen depreciation, heightening market concerns about foreign-exchange intervention. Views also spread among market participants that sell orders were waiting around ¥158.
As of 5 p.m., dollar-yen traded in the ¥157.70–¥157.80 range, while euro-yen was in the ¥176.50–¥176.60 range. The Nikkei Average ended trading down ¥208.25 from the previous day at ¥63,081.86.
China's private-sector manufacturing PMI was 52.0 in October, in line with expectations but slightly below the previous month. The market was focused on the possibility that the battle around the ¥158 level and the outcome of the US midterm elections could affect the direction of markets.