The dollar was in the lower ¥156 range in Tokyo trading on the morning of the 7th, marginally lower than on Friday. With few fresh cues following the U.S. employment report, the outlook is difficult to assess ahead of the release of the U.S. CPI.
In the Tokyo foreign exchange market on the morning of the 7th, the dollar-yen rate was trading in the lower ¥156 range, slightly below Friday's level. As of 9:00 a.m., the dollar was around ¥156.20, down about 10 sen from Friday, with the dollar marginally lower and the yen firmer.
In overseas markets late last week, the dollar-yen pair traded mostly in the lower ¥156 range during European hours. After the U.S. employment report was released, it briefly rose to the ¥156.70 range before reversing course and falling into the ¥155 range. It later returned to around ¥156.
The U.S. employment report for August showed nonfarm payrolls rising by 162,000 from the previous month, far exceeding market expectations. July payrolls were also revised from the previously reported decline of 23,000 to an increase of 21,000. Market sentiment broadly viewed the report as solid, and the dollar's movement was driven by developments in U.S. long-term interest rates.
There are no major events scheduled today, and many market participants expect trading to remain subdued because the United States is also observing a holiday. The euro is lower against both the yen and the dollar.
Overall, with the U.S. Consumer Price Index (CPI) release ahead, the dollar-yen pair could become volatile again depending on this week's economic data.