Tokyo forex summary: Dollar briefly softens to 158.50 yen range, stalls after short-covering fades

Thu Sep 3, 2026 10:14 am JST Currency

In the Tokyo foreign exchange market on the 3rd, the dollar traded around 158.71 yen as of 10:00 a.m., down about 1.00 yen from 5:00 p.m. the previous day, reflecting dollar weakness and yen strength.

In the New York foreign exchange market on the 2nd, the dollar closed around 158.71 yen, down nearly 1.50 yen from the previous session. The pair briefly fell to 158.22 yen, driven by hawkish comments from a Bank of Japan board member and speculation over potential currency intervention.

In Tokyo trading on the 3rd, the dollar gradually recovered its footing through short-covering and related buying, briefly rising back to 158.97 yen around 9:20 a.m. However, dollar buying and yen selling lacked momentum, as market participants sought to determine whether the previous day's sharp drop reflected yen-buying intervention by Japanese authorities or a rate check - a preliminary step before intervention - by U.S. authorities. As upside momentum faded, the pair stalled and hit 158.54 yen around 9:50 a.m.

Against the dollar, the euro traded around $1.1589, up slightly over $0.0010 from 5:00 p.m. the previous day. Against the yen, the euro traded around 183.93 yen, down about 0.95 yen, reflecting euro weakness and yen strength.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

Tokyo forex summary: Dollar briefly softens to 158.50 yen range, stalls after short-covering fades

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