In the Tokyo market on the morning of the 22nd, the yen was little changed in the low ¥158s. Spot selling by importers capped the upside, and dollar-yen remained range-bound around ¥158.
In the Tokyo foreign-exchange market on the morning of the 22nd, the yen was somewhat soft, at times falling to around ¥158.16-158.17 per dollar. As of 10:00 a.m., spot selling of the yen and dollar buying by importers and other commercial customers were weighing on the market.
The yen's decline against the euro widened, while euro-yen was at ¥177.65-177.68 and euro-dollar remained in a narrow range around $1.1232-1.1233. Against the previous day's range, dollar-yen traded in a narrow band in the low ¥158s, while movements in long-term US interest rates also limited the market's direction.
The reference ranges for today's Tokyo market were dollar-yen at ¥158.08-158.25, euro-dollar at $1.1228-1.1236 and euro-yen at ¥177.50-177.76. With the ¥178 level in sight, the euro-yen upside was seen as heavy. Market participants said they expect trading to remain centred in the low ¥158s, watching both US Treasury yields and domestic spot selling of the yen.
Based on these movements, dollar-yen is expected to lack direction, with trading continuing to focus on spot selling by importers and movements in long-term US interest rates. Euro-yen may remain top-heavy near the ¥178 level.