The market reacted to weak US employment data. Dollar/yen fell at times ahead of Prime Minister Takaichi's policy speech, while the G7's reserve-release policy was in focus.
US September employment data showed nonfarm payrolls increasing by 29,000, below expectations, while the unemployment rate was 4.2% and the labor force participation rate was 61.8%. Wage growth consequently slowed to 3.0% year on year, its lowest level since May 2021.
In Tokyo, September CPI for the 23 wards rose 2.7% year on year on a core basis excluding fresh food, accelerating from 1.8% the previous month. The end of free childcare and the impact of water charges were cited as factors pushing prices higher.
In Europe, September eurozone HICP rose 3.8% year on year, above market expectations, while core HICP rose 2.5% and accelerated from the previous month. This indicated that inflationary pressures were continuing.
Selling pressure on the dollar temporarily strengthened against the backdrop of US long-term interest rates and persistently high oil prices, and dollar/yen fell to around ¥156.95. It subsequently narrowed its decline on concerns about oil market movements and fiscal and government bond supply-demand conditions.