In Tokyo trading on the morning of the 19th, dollar/yen was pushed lower by position-adjustment selling, falling to the upper ¥157 range. It stood at ¥157.79–80 at 9:00 a.m., approximately 21 sen below the ¥158.00–01 level at the end of the previous week.
With few market cues, dollar/yen was pushed lower by position-adjustment selling, falling to the upper ¥157 range. It stood at ¥157.79–80 as of 9:00 a.m., down from ¥158.00–01 at the end of the previous week.
During European hours, the pair continued to trade in a narrow range around ¥157.80–158.10. At the start of U.S. trading, it fell to the ¥157.60 range as long-term yields declined, then recovered to the ¥158.30 range mid-session in response to movements in oil futures and long-term yields.
Toward the end of the session, it softened to around ¥157.90–158.00 as U.S. yields declined. With next week's Japan-U.S. policy meetings and the U.S. midterm elections the following week approaching, investors are increasingly taking a wait-and-see approach. Many market participants say dollar/yen is unlikely to move significantly in the absence of fresh catalysts.
The euro fell against the yen and edged lower against the dollar, with selling leading the market amid the impact of protests in France. While persistently high oil prices are supporting dollar/yen, concerns about excessive investment in AI-related stocks and reduced expectations of an early FRB rate hike are also having an effect.
The article says that the upcoming policy meetings and midterm elections are encouraging the market's wait-and-see stance.