Tokyo FX summary: Dollar softens to 157.79 yen briefly following Tokyo CPI data

The dollar traded near 158.13 yen in Tokyo as of 10:00 a.m. on Oct. 2, down about 25 sen from 5:00 p.m. the previous day, reflecting a weaker dollar and stronger yen.

In New York on Oct. 1, the dollar ended near 158.09 yen, up nearly 70 sen from the previous day, reflecting a stronger dollar and weaker yen. The pair rose to the 158.20 yen range at one point as U.S. crude oil futures continued to climb amid ongoing Middle East uncertainty.

However, the dollar faced heavy resistance in Tokyo on the day. The September Tokyo Consumer Price Index (CPI), released by the Ministry of Internal Affairs and Communications in the morning, showed core CPI (excluding fresh food) rose 2.7% year-on-year, topping 2% for the first time in eight months and rekindling expectations for an early Bank of Japan rate hike. With the U.S. September employment report due later tonight Japan time, market participants were reluctant to build large positions, causing the dollar to briefly soften to 157.79 yen. Meanwhile, the euro weakened against both the dollar and the yen, weighed down by concerns over France's fiscal situation.

The euro traded near $1.1234 against the dollar, down about $0.0070 from 5:00 p.m. the previous day, reflecting euro weakness and dollar strength. Against the yen, the euro stood near 177.66 yen, down nearly 1 yen 40 sen on euro weakness and yen strength.

Source: MINKABU PRESS

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