Yen Weakens on Oil Prices and Rate Hike Expectations
The Japanese yen weakened in early October trading, reaching the upper 157 range against the U.S. dollar. As of 5:00 p.m. JST on the 5th, the yen traded at 157.63-66 per dollar, down 6 sen from the previous weekend. Elevated crude oil prices and persistent expectations of U.S. interest rate hikes contributed to yen selling and dollar buying. The Houthi militant group's attacks on Saudi oil facilities amplified supply concerns, keeping crude futures near $90 per barrel.
France's political and fiscal uncertainties also pressured the yen, as investors favored the dollar as a safe haven. The euro extended its decline against the dollar, falling for an eighth consecutive session to $1.1199-1.1200. Meanwhile, the yen strengthened against the euro, briefly touching its highest level since early November 2025.
The September U.S. Employment Report showed weaker-than-expected job growth, with nonfarm payrolls increasing by just 29,000. While an October rate hike seemed less likely, markets still anticipated further tightening by year-end. The 10-year U.S. Treasury yield hovered around 5.26%, reflecting ongoing inflation risks tied to high oil prices and global fiscal strains.
In technology news, TDK unveiled a prototype of smart glasses that project images directly onto the retina. The device features a proprietary meta-optics mirror, just 150 nanometers thick, enabling clear visuals regardless of visual acuity. TDK plans to showcase the technology at CEATEC and aims for full-color demonstrations and mass production within a few years.