Share prices were firm in the London market, and dollar-yen was bought back to the mid-¥158 range, broadening the trend toward yen depreciation. Euro-dollar rose to the upper 1.12 range, while market sentiment improved on European share movements and the Democratic Party's victory in the U.S. election.
In the London market, the yen's depreciation gained the upper hand against a backdrop of higher share prices, and dollar-yen continued trading in the mid-¥158 range. Market reactions to the election results in Japan and the U.S. remained sharp, with the yen tending to weaken at times following the Democratic Party's victory. In early Tokyo trading, concerns about curbs on AI investment spread and equities were sold heavily, while dollar selling and yen buying were temporarily pronounced.
As European shares remained firm during London hours and the dollar's decline persisted, dollar-yen was bought back to around 158.60, euro-dollar rose to the upper 1.12 range and euro-yen to the lower ¥178 range. Pound-dollar traded in the upper 1.34 range, with cross-market risk appetite supporting yen depreciation.
The day's moves suggest that the market's positive view of a Democratic victory is being revised, and a period requiring close attention to developments in the Middle East and the future operation of Congress is expected to continue. After fluctuating during the day, dollar-yen was more inclined toward yen depreciation in the opening part of the London session.
These moves can be viewed as a series of developments in which market reaction to the U.S. midterm election results and movements in European shares combined to generate risk appetite across the foreign exchange market.