In Tokyo foreign exchange trading on the 4th, the yen fell modestly. At 17:00, USD/JPY was trading at ¥158.03–¥158.05, after briefly rising to around ¥157.37. The yen was supported by lower US interest rates following reports that the Democrats were leading in the US midterm elections, but its advance subsequently stalled and it turned lower.
In Tokyo foreign exchange trading on the 4th, the yen extended its modest decline, with USD/JPY trading at ¥158.03–¥158.05 as of 17:00. On the day, the yen weakened and the dollar strengthened, although the yen briefly rose to around ¥157.37.
As reports ahead of the US midterm elections that the opposition Democratic Party was leading spread, views that US interest rates would decline gained traction, supporting the yen. In the afternoon, however, this movement ran its course and downward pressure on the yen returned.
Early in the morning, dollar buying and yen selling prevailed following the release of US employment-related data. There was also a period when expectations for additional US rate hikes increased after the JOLTS job openings data exceeded market expectations.
In afternoon trading, the decline in long-term US interest rates paused, and yen buying increased as the Nikkei Stock Average narrowed its decline. Movements in US crude oil futures also affected the yen.
The yen fell against the euro for the fourth consecutive day, at ¥177.61–¥177.65 per euro as of 17:00. The euro rose against the dollar for the fourth straight day, trading at $1.1239–$1.1240 per euro.