The dollar rose further into the low ¥160s in the Tokyo foreign exchange market. Against a backdrop of continued gains in crude oil futures and long-term US Treasury yields, it had risen to around ¥160.26 per dollar by noon.
In the Tokyo market on the morning of the 2nd, the dollar rose against the yen, with the trading range at noon around ¥160.26. The dollar was higher and the yen weaker than at the previous day's close, rising from around ¥159.90 from the European session through the early US session to around ¥160.20. Market observers said the continued rises in crude oil futures and long-term US Treasury yields prompted dollar buying and yen selling.
As the Tokyo session began and the market moved toward the announcement of the Tokyo fixing, dollar demand from importers intensified, pushing the dollar into the ¥160.30 range. It subsequently extended its gains, at one point rising to around ¥160.40. Market participants also said that although speeches by BOJ officials were scheduled, they had not provided any major market catalyst.
The euro weakened against both the yen and the dollar. At noon, one euro was approximately ¥185.61, while the euro stood at around $1.1581–$1.1582 against the dollar. Many market participants said the press conferences and related remarks by the finance minister and BOJ governor had a limited impact.