The dollar-yen pair traded narrowly in the low ¥158 range in the Tokyo market, while the FOMC minutes were in line with market expectations. The market is expected to remain focused on waiting for the next catalyst.
In Tokyo foreign-exchange trading on the 8th, the yen traded in the low ¥158 range to the dollar, reaching ¥158.18–19 at 5 p.m., down 8 sen against the dollar from the previous day. In morning trading, the yen was bought back to the ¥157.50 range at one point, while selling of the dollar and buying of the yen intensified against the backdrop of the Nikkei's decline.
Buying strengthened after the Tokyo fixing, and the dollar rose to the ¥158.10 range shortly after 11 a.m. Higher crude oil futures and U.S. long-term interest rates were seen as factors supporting the dollar, and dollar-yen stood at ¥158.16–17 at noon, a modest rise from 5 p.m. the previous day.
The September FOMC minutes were viewed by domestic market participants as hawkish but not sufficient to raise expectations for an early rate hike, limiting their impact on the foreign-exchange market. Market participants indicated that they wanted to assess the next catalyst.
In European trading that day, pressure to sell the euro and buy the yen continued. Euro-yen traded around ¥177, while euro-dollar moved narrowly near $1.1202. Tokyo trading lacked a clear direction, with attention expected to focus on U.S. economic data and comments on monetary policy in Japan and the United States.