In the Tokyo foreign exchange market on the morning of the 9th, dollar-yen moved around ¥158, with directionless, range-bound trading continuing. With high long-term U.S. interest rates, a loss of momentum in oil prices and concerns about intervention all in play, the pair continued to struggle to break decisively in either direction.
In morning trading on the 9th, dollar-yen traded in a range of ¥157.76 to ¥158.14, euro-yen from ¥176.98 to ¥177.51, and euro-dollar from $1.1210 to $1.1228. No new direction emerged, with the dollar moving only slightly lower and the yen slightly higher from the previous day's levels.
The U.S. 10-year Treasury yield remained high but softened, while movements in crude oil futures restrained dollar buying. With multiple factors in play, speculators also avoided taking one-way positions. Prime Minister Takaichi Sanae (高市早苗)'s remarks were considered to have a limited direct impact on the market.
The Chicago IMM yen position shifted toward neutral. After yen short positions were unwound and yen longs temporarily surged, yen longs contracted again, returning the position to a level close to neutral. The prevailing view is that the Japan-U.S. interest-rate differential will not narrow for the time being, and expectations are growing that range-bound trading will continue.
Asian currencies were generally subdued, while the dollar index traded approximately 0.1% lower. Factors supporting the dollar's downside were limited, and some observers believe it will take time for a clear trend to form.