In the Tokyo market on the 7th, USD/JPY retreated, rising to around ¥158.50 in the morning before falling to ¥157.95 toward evening. EUR/JPY fell from the ¥178 range to the ¥176 range, while the Nikkei 225 closed sharply lower from the previous day.
USD/JPY retreated in the Tokyo market on the 7th. Dollar buying led the market on the rise in long-term U.S. Treasury yields and higher crude oil prices, but cautious expectations regarding the Bank of Japan's monetary policy operations prompted a reversal toward yen buying, with USD/JPY falling to ¥157.95 by evening.
EUR/JPY fell from ¥178.30 to ¥176.74, while EUR/USD declined from 1.1262 to 1.1181. As of 17:00, USD/JPY was ¥158.00–10 and EUR/JPY was ¥176.90–00.
The Nikkei 225 opened at ¥70,582.11 and closed at ¥70,035.71, down ¥648.27 from the previous trading day. Economic indicators included total cash earnings (August), up 3.8% year on year; the coincident index (August), 118.7; the leading CI index (August), 117.6; and German industrial production (August), up 2.0% month on month.
In remarks by a senior official, Prime Minister Takaichi indicated a policy of securing funding for support payments without relying on special deficit-financing bonds, as well as an intention to use reserve funds flexibly in response to disruptions in the global economy.