In the Tokyo market, dollar-yen reversed its morning decline and traded in the upper ¥157 range. Cross-yen pairs remained firm alongside factors weakening the yen, while the Bank of Japan’s minutes drew attention to the direction of monetary policy ahead.
In the Tokyo market on the 5th, dollar-yen fell to ¥157.30 in the morning but recovered to around ¥157.80 in the late afternoon as investors looked ahead to the Bank of Japan’s future monetary policy. Cross-yen pairs remained firm as the yen weakened.
Euro-yen rose from ¥181.54 in the morning to ¥182.06 in the afternoon.
Euro-dollar rose from $1.1527 to $1.1546. The Nikkei average closed at ¥66,300.44, up a substantial ¥2,342.91 from the previous day.
As of 5 p.m., dollar-yen was at ¥157.70-80 and euro-yen at ¥182.00-10. The minutes of the Bank of Japan’s monetary policy meeting showed that members shared the view that raising the policy rate was appropriate while recognizing the risk that inflation could exceed the price stability target, although some also said accommodative financial conditions should be maintained.
Several political and Bank of Japan officials commented during the day, with committee members voicing concerns about upward pressure on consumer prices and calling for consideration of fiscal and market stability. Economic data included Japan’s Monthly Labour Survey, which showed total cash earnings up 3.4% year on year, New Zealand’s unemployment rate at 5.6%, and other PMI indicators.