In the Tokyo foreign exchange market on the morning of the 5th, the yen traded in the upper ¥157 range, with dollar buying prevailing. Yen buying strengthened after the fixing, and dollar-yen fell to ¥157.48.
In the Tokyo foreign exchange market on the morning of the 5th, the yen traded mainly in the upper ¥157 range per dollar. Expectations of higher US long-term interest rates and the impact of higher oil prices prompted yen selling and dollar buying, while yen buying by domestic real-money investors strengthened after the fixing, putting downward pressure on dollar-yen.
As of 10:00 a.m., dollar-yen was at ¥157.75–¥157.76, reflecting ¥0.18 of yen depreciation and dollar appreciation from the end of the previous week. Dollar-yen rose as high as ¥157.98 in the morning but failed to reach ¥158 and was pushed back to the ¥157.70 range. Thereafter, market participants said dollar buying was prevailing ahead of the fixing before 10:00 a.m., while yen selling and dollar buying by importers weighed on the market.
Euro-yen also fell to ¥176.95 at one point as of 10:00 a.m., while euro-dollar was at $1.1241–$1.1242, reflecting euro depreciation and dollar appreciation from the end of the previous week.
The reference ranges so far today were ¥157.48–¥157.98 for dollar-yen, $1.1241–$1.1261 for euro-dollar and ¥176.95–¥178.03 for euro-yen. Against the backdrop of concentrated settlements on the 5th and 10th of the month, some market participants expect activity to pick up depending on Federal Reserve-related developments and US data after flows from domestic real-money investors run their course.