At midday on the 16th, the dollar was range-bound around ¥158 against the yen in the Tokyo foreign exchange market. Overall momentum and direction remained limited as the market watched movements in long-term U.S. interest rates.
In the Tokyo market on the morning of the 16th, dollar-yen traded within a range around ¥158 per dollar and remained near that level at midday. The market was assessing movements in long-term U.S. interest rates in the after-hours market, and there were no major moves in either direction.
In overseas markets the previous day, risk aversion continued during European trading hours and dollar-yen weakened to the ¥157 range. During U.S. trading hours, some indicators, including the PPI, came in stronger, but the pair was quickly pushed back to the ¥157.50 range. It subsequently recovered temporarily to the ¥158 range as U.S. stocks rebounded, but was pushed back toward ¥158 near the end of the session.
The level remained firm after 9:00 a.m., and the pair at one point rose to near ¥158.20 around the Tokyo fixing. However, it softened toward ¥158 by midday as selling emerged on the rebound. The market continued to watch long-term U.S. interest rates, while some took the view that concerns over AI-related investment would weigh on the market’s upside.
The euro rebounded to the ¥177 range against the yen and was range-bound around $1.1217 against the dollar. Overall, major moves in dollar-yen remained limited as the market focused on U.S. interest rates.