The dollar-yen pair fell sharply in Tokyo trading on the 3rd, with its decline accelerating in the afternoon. Hawkish comments from the Bank of Japan prompted expectations that monetary tightening could accelerate, supporting yen buying. The euro-yen pair traded in the ¥181–184 range.
The dollar-yen pair opened sharply lower in Tokyo trading on the 3rd. The rebound from the previous day's steep decline was weak, and the pair shifted to a downward trend in the morning from around ¥158.96.
Hawkish comments from Bank of Japan officials fueled expectations of an accelerated pace of monetary tightening, supporting yen buying. By evening, with European participants entering the market, the dollar-yen pair moved lower into the ¥156 range.
The euro-yen pair fell from ¥184.17 to ¥181.58, while the euro-dollar pair traded in a range of $1.1583–$1.1614. At 5 p.m., the dollar-yen pair was quoted at ¥156.80–156.90 and the euro-yen pair at ¥182.20–182.30.
Among economic indicators, the August services PMI improved to 51.4, while final PMI readings for Europe showed mixed signs of improvement and deterioration from the previous month. The Nikkei Stock Average stood at ¥64,214.48 at the close, down ¥111.16 from the previous day.