Reports on the Democratic Party's lead in the US midterm elections on the morning of the 4th, together with movements in US long-term yields and the decline in the Nikkei Average, drove dollar-yen in Tokyo sharply down to the mid-¥157 range. At midday, it stood at ¥157.68-69, a modest decline of approximately 5 sen from the previous business day.
In the Tokyo foreign exchange market on the morning of the 4th, the dollar fell sharply, briefly reaching the mid-¥157 range, as reports that the Democratic Party was leading in the early stages of the US midterm election count weighed on the market. At midday, dollar-yen stood at ¥157.68-69, representing a modest dollar decline and yen appreciation of ¥0.05 from the previous business day.
Later, during European trading hours, dollar-yen rose from the latter half of the ¥157 range to around ¥158, influenced by movements in US long-term yields and the Nikkei Average. The rise during Japanese trading hours was limited, while during European and US trading hours it reached a high in the ¥158.70 range.
Early in Tokyo trading on the 4th, dollar-yen was again trading in the ¥158.60-70 range, but fell to the ¥158.40 range toward 9:00 a.m. on profit-taking and other selling. Around the central rate announcement, it returned to the ¥158.50 range.
After the central rate announcement, US long-term yields fell on reports that the Democrats were ahead, while the Nikkei Average fell sharply. Dollar-yen rapidly moved lower, briefly falling to the ¥157.50 range.
The euro fell against the yen and rose against the dollar. At midday, one euro was ¥177.44-48, while the euro was trading at $1.1252-1253 against the dollar.