The dollar rose to the lower ¥156 range in the Tokyo market on the morning of the 18th. The dollar's rise against the yen and August nationwide CPI coming in below expectations encouraged buying.
In the Tokyo foreign exchange market on the morning of the 18th, the dollar traded in a range of ¥156.16 to ¥156.17, about 48 sen higher against the yen than the previous day. The dollar traded in the upper ¥155 range during European hours, and selling emerged early in U.S. trading against a backdrop of lower oil prices and falling long-term interest rates. Buying back then progressed, and the dollar moved higher from the middle of the session onward.
The rise subsequently slowed again toward the end of the session, with gains pausing in the ¥155.90 range. Some market participants said that the dollar buying and yen selling were somewhat favored after August CPI excluding fresh food rose 1.7% year on year, slightly below the 1.8% expected. The view that buying by real-demand players would strengthen ahead of the holiday period also spread through the market.
However, some market participants said that caution was generally strong ahead of the release of the Bank of Japan's policy meeting decision and Governor Ueda's press conference, and that no clear direction had emerged. The euro rose against the yen and moved sideways against the dollar.
As of 9:00 a.m., the euro was trading at around ¥179.22 and approximately $1.1474-$1.1475 per euro.