Yen Holds in Low ¥158 as Dollar Gains on Strong U.S. Data

Overview

• The yen traded in the low ¥158 per U.S. dollar range on Wednesday, with Tokyo quotes around ¥158.07–¥158.09 and New York quotes near ¥158.33–¥158.43.
• Dollar strength was driven by better-than-expected U.S. economic reports that increased market expectations for further rate hikes by the U.S. central bank.
• Compared with the pre-holiday level on Nov. 2, the yen was about ¥0.33 weaker in Tokyo, reflecting sustained dollar demand during the session.
• Ongoing U.S. midterm vote-counting briefly pushed investors into assets seen as safer, which caused short-lived yen buying and pressured the Nikkei stock index.
• The euro was trading around ¥177.65–¥177.69 in Tokyo, and traders say further moves will hinge on upcoming U.S. data, Fed rate signals, and how election results affect global risk appetite.