In the Tokyo market, USD/JPY rose to ¥158.51 during the morning, but amid caution from Japanese and US authorities and demand-related flows, it remained in the upper ¥158 range in the afternoon.
Following a reversal of the previous day's dollar selling in overseas markets, USD/JPY rose to ¥158.51 during the Tokyo morning session. Demand-related dollar buying and yen selling supported the market ahead of the fixing, but caution over official efforts to curb yen weakness remained strong, and reluctance to buy dollars spread in the upper ¥158 range. Although the pair was sold to ¥158.11 at times in the afternoon, it did not experience a significant breakdown on the downside.
EUR/USD continued to benefit from the previous day's dollar-selling trend, extending its gains to 1.1211 in the early afternoon. GBP/USD also remained firm, rising from 1.3250 in the morning to 1.3275.
Yen crosses tested higher in tandem with the morning rise in USD/JPY but weakened as USD/JPY lost momentum. EUR/JPY rose from around ¥177.30 early in the morning to ¥177.59 before falling back to the ¥177.20 range in the afternoon. GBP/JPY reached ¥210.22 in the morning before being pushed back to around ¥209.90, reflecting a market with limited upside.
Market movements were limited around the release of economic indicators and remarks by officials scheduled for today. The dollar remained near its morning highs overall, while dip-buying emerged near its lows. Moves in other currencies, including the euro and Australian dollar, helped restrain dollar weakness, and the market as a whole failed to establish a clear direction.