The Tokyo yen stalled in the upper ¥157 range per dollar, with real-demand yen selling and dollar buying capping the upside. Expectations that the BOJ will continue raising interest rates supported the yen, while corporate real-demand decisions slowed the market's movement.
In Tokyo trading at the start of the week, the yen remained around the upper ¥157 range per dollar, trading at ¥157.92–94 as of 10:00 a.m., up 8 sen against the dollar from 5:00 p.m. the previous day. The yen was supported by the BOJ's stance of continuing to raise interest rates, while real-demand yen selling and dollar buying capped the upside.
At 8:30 a.m., the yen was trading at ¥157.82–83, stronger against the dollar, but its gains narrowed as trading progressed. Market participants said there was dollar demand ahead of the fixing, while real-demand yen selling weighed on the market. Moves in the Nikkei also weakened yen buying as a low-risk currency.
The yen also narrowed its gains against the euro. As of 10:00 a.m., EUR/JPY was ¥177.27–30, with the yen up 30 sen against the euro. The euro held up against the dollar, and the stronger-yen, weaker-dollar trend continued.
Market participants said the lack of fresh factors would likely keep price movements small. The market is expected to continue assessing the BOJ's policy stance and real-demand flows.