In Tokyo trading on the morning of the 6th, dollar-yen was seen recovering to the ¥157.70 range. At the same time, risk aversion intensified against the backdrop of a plunge in U.S. AI stocks and a decline in the Nikkei Average. Yen buying led the move before buybacks came in, and the pair is currently trading in the upper ¥157 range.
In Tokyo trading on the morning of the 6th, dollar-yen fell as low as ¥157.25 before recovering to the ¥157.70 range. The sell-off in AI-related stocks in the U.S. market and the decline in the Nikkei Average heightened risk aversion, supporting yen buying.
Cross-yen pairs moved similarly, with euro-yen edging from ¥176.47 to around ¥177.11 and euro-dollar from $1.1211 to $1.1235. The latest trading ranges were ¥157.25–¥157.84 for dollar-yen, ¥176.47–¥177.11 for euro-yen and $1.1211–$1.1235 for euro-dollar.
On the previous afternoon, dollar-yen also continued to trade sideways near the ¥157.80–90 range. Dollar selling temporarily subsided as long-term U.S. Treasury yields declined and crude oil prices paused, but yen buying advanced as the Nikkei Average fell. Going forward, developments in U.S. share prices and long-term interest rates will be key factors influencing the market.
A stronger yen could pressure profitability at exporters, but the rate is currently little changed in the upper ¥157 range, with no sharp changes seen in companies' assumed exchange rates. Depending on future developments, the direction of dollar-yen could shift again.