Dollar selling eased in London, and USD/JPY temporarily fell to the upper ¥157 range. Against a backdrop of lower oil prices and movements in US interest rates, the euro and sterling moved to the 1.11–1.12 range and the low 1.32 range, respectively, while reports that the BOJ may defer a rate hike also affected trading.
London trading began with dollar selling, but this gradually eased. Against a backdrop of a retreat in oil prices and lower US Treasury yields, adjustment moves were seen ahead of the US CPI release the following day. EUR/USD was bought to just below 1.12 early in London following its rise in Tokyo, but is currently trading in the upper 1.11 range. GBP/USD continued to edge higher, while USD/JPY extended its decline to the upper ¥157 range amid volatile trading.
USD/JPY continues to trade in the low ¥158 range. After reaching around ¥159 in the early Tokyo session, it turned lower and tested levels below ¥158 early in London. Following reports that the BOJ was likely to leave rates unchanged at its meeting this month, yen selling spread and the pair rebounded to around ¥158.37, but selling quickly resumed and it fell to around ¥157.83. Trading then settled, with the pair holding above the low ¥158 range.
EUR/USD is trading in the upper 1.11 range. It rose from an early Tokyo low of 1.1154 and reached around 1.1196 early in London, but has since been pushed back into the 1.1180 range. EUR/JPY was bought to around ¥177.10 early in London, then extended its decline to around ¥176.49 before being bought back to around ¥176.90. While the dollar's weakening trend continued, the retreat in oil prices and lower US Treasury yields also affected trading.
The dollar index has given back the previous day's gains, with adjustment selling generally predominating. Cross-yen pairs have fluctuated in line with USD/JPY.