In morning trading in London, the yen weakened slightly against the dollar and traded in the mid-¥158 range. Yen selling and dollar strength gained a slight edge against the backdrop of heightened tensions in the Middle East. Key indicators, including the U.S. September CPI, are due this week.
As of 10:00 a.m. in London, the yen had declined slightly against the dollar and was trading at ¥158.40–50. Compared with its level at 4:00 p.m. on the previous business day, the yen was down approximately 2 sen against the dollar. The backdrop was persistently high crude oil prices and heightened tensions in the Middle East, with yen selling and dollar buying observed.
At the start of the week, following an airport attack in Riyadh, the Saudi capital, by the Iran-aligned Houthi militant group in Yemen, views emerged that market caution would persist. Trading in London opened in the lower ¥158 range, and some market participants believe the yen is being supported around ¥158.40 on the downside.
Market participants said the 200-day moving average is being watched as a psychological milestone, and some expect trading to continue in the mid-¥158 range. Attention this week is focused on indicators including the U.S. September consumer price index (CPI), scheduled for release on the 14th.
Against the euro, the yen was in the lower ¥177 range per euro, while the euro was trading at $1.1188–1.1198 against the dollar. Sterling was trading at $1.3245–1.3255 per pound.