In the Tokyo foreign exchange market, the yen moved narrowly in the upper ¥157 range. Ahead of the U.S. jobs report, moves to tilt positions in one direction were limited, while risk aversion strengthened in some phases of trading.
In Tokyo trading on the afternoon of the 6th, the yen stood at ¥157.89–¥157.90 per dollar, up 29 sen against the dollar from the previous day. Japanese and U.S. stocks fell, strengthening investors' risk-averse stance and prompting yen buying and dollar selling, while positioning was also unlikely to tilt in one direction ahead of the release of the U.S. October jobs report.
As of 10 a.m., the yen was at ¥157.81–¥157.82 per dollar, up 37 sen from 5 p.m. the previous day. Selling of yen and buying of dollars by official-sector and real-demand participants became more active, increasing downward pressure on the market. The yen's appreciation prompted greater activity among Japanese importers needing to secure dollar funds.
The yen also strengthened against the euro in morning trading, standing at ¥177.03–¥177.06 per euro as of 10 a.m., an 80-sen gain for the yen against the euro. The euro stood at $1.1218–$1.1219 at the same time, with the euro weaker against the dollar.
In overseas trading the previous day, the dollar gradually strengthened on movements in crude oil prices and U.S. long-term interest rates, rising to around ¥158.50 before being bought back to the ¥157.60–¥157.80 range after major stock indexes plunged and long-term interest rates declined. The yen briefly moved back to the mid-¥157 range on the morning of the 6th, and the market remains on edge over the possibility of a break from its range depending on the U.S. jobs report.