In Tokyo trading on the morning of the 8th, the yen extended its gains against the dollar into the upper ¥157 range. Against the backdrop of the Nikkei's decline, demand for the stability of the yen over the dollar strengthened, and the market heard comments that it was “slightly long dollars” ahead of the midpoint fixing.
On the morning of the 8th, the yen extended its gains against the dollar, trading at ¥157.81-82 per dollar as of 10:00 a.m., with the yen stronger and the dollar weaker than the previous day. The dollar was also weaker than at the New York market close.
The Nikkei Average's decline in the Tokyo stock market was seen as a factor behind yen buying, with market participants sharing the view that funds had moved into the yen as a safe-haven asset. Shortly after 9:00 a.m., the dollar tested the upside to ¥158.11, but selling subsequently prevailed.
At times, the dollar broke below the previous day's ¥157.85 low and the ¥157.77 low recorded on the 6th, while cross-yen pairs remained soft. Short covering ahead of the Tokyo fixing temporarily weakened the selling momentum.
A foreign-exchange official at a domestic bank described the market as “slightly long dollars” ahead of the midpoint fixing. There is a view that expectations of yen buying and dollar selling by domestic exporters supported the market.