Dollar-Yen Declines on Tokyo Exchange Amid Holiday-Limited Trading
The dollar-yen pair saw a decline in Tokyo's foreign exchange market on November 11th, reaching as low as 158.93 yen per dollar before recovering to 159.15 yen per dollar by 10:00 a.m.
This weakness is attributed to the previous day's sharp rally in overseas markets, causing a pullback in dollar-yen. However, dip-buying appetite remained solid, and after selling subsided, the pair recovered to 159.10, indicating firm support on the downside.
The euro-yen also weakened, standing at 183.75 yen per euro as of 10:00 a.m., roughly 14 sen weaker on the euro compared to the New York close of 183.89 yen. Following the yen-strengthening trend, it briefly fell to 183.57 yen before buybacks emerged.
The market participation was limited due to Japan's 'Mountain Day' holiday, resulting in thin trading and liquidity scarcity. The focus now is on whether dollar-buying, yen-selling flows will increase again after the short-term correction concludes.