In the Tokyo market on the morning of the 31st, the dollar rose against the yen to the upper ¥159 range, while the Nikkei Average fell sharply by around ¥1,500. Expectations of an early rate hike in the United States are weighing on the yen, while overall market conditions remain weak.
The yen's decline has eased in the Tokyo foreign exchange market on the morning of the 31st. As of 10 a.m., the dollar was trading at ¥159.95–¥159.97, leaving the yen around 45 sen weaker and the dollar stronger than at the end of the previous week. As expectations of an early US rate hike spread, yen selling and dollar buying continued, while the stock market remained a burden. Some market participants, however, said there appeared to be little imbalance ahead of the fixing before 10 a.m.
Major stock indexes fell sharply across Asian markets on the 31st, following expectations of an early US rate hike and declines in US technology stocks at the end of the previous week. The Nikkei Average fell around ¥1,500 at one point, supporting the yen's downside.
There were reports of "no imbalance" ahead of the fixing before 10 a.m. There appeared to be no significant imbalance in orders from Japanese exporters and importers. The yen was firm against the euro, with the euro trading at ¥185.39–¥185.41 as of 10 a.m., as the euro's strength and the yen's weakness continued. The euro narrowed its decline against the dollar and was around $1.1590 as of 10 a.m.