The dollar-yen pair traded around ¥154 in the Tokyo foreign exchange market, moving higher on morning demand-driven buying and rising to around ¥154 near noon. With market participants also expecting selling into rallies in the ¥154 range, trading remained directionless.
In the Tokyo market on the morning of the 14th, corrective buying of the dollar-yen pair prevailed, pushing the rate higher from the start of the session and keeping it around ¥154 to the dollar. The indicative rate at noon was ¥154.03–03, representing a lower dollar and higher yen level than at the end of the previous week.
In overseas trading at the end of the previous week, the pair came under renewed selling during European hours following its earlier gains, falling to the ¥153.20 range in the early U.S. session. Although the core index was relatively strong after the CPI release, the pair was again pressured by selling and ended the session in the ¥153.50 range.
In the Tokyo market, the pair briefly rose to the ¥153.70 range in early morning trading, but after 9 a.m. it was held back by selling into rallies and struggled to extend its gains. Demand-driven buying strengthened after 9 a.m., lifting the pair to the ¥153.80 range around the Tokyo fixing. Near noon, it extended its gains to around ¥154. At 10 a.m., dollar-yen was ¥153.64, only about 3 sen above the New York close of ¥153.61.
While concerns about further yen appreciation remained strong among market participants, the pair was at one point sold down to ¥153.38. At the same time, there was also dollar buying and yen selling prompted by higher crude oil prices. An official at a major Japanese bank said, "No particular catalyst has emerged, so position-adjustment buying may have prevailed."
Euro-yen rose after 9 a.m. and stood at ¥178.38–39 at noon. At 10 a.m., it was ¥178.04, below the New York close of ¥178.11. The euro-dollar rate was €1 = $1.1581–1.1581, slightly lower than at the end of the previous week. Some market participants said the dollar's downside appeared firm against the backdrop of higher crude oil prices during the day.
The day's reference ranges were seen at ¥153.38–153.79 for dollar-yen, $1.1585–1.1612 for euro-dollar and ¥177.85–178.25 for euro-yen. Developments in U.S. monetary policy and crude oil prices remained key areas of focus.