The dollar-yen rate rose to the mid-¥159 range on the morning of the 18th, standing at ¥159.45-46 as of noon. Higher oil prices, against the backdrop of stalled talks to end the fighting in the Middle East, prompted yen selling, leaving dollar buying dominant.
In the Tokyo market, the dollar-yen rate rose to the mid-¥159 range on the morning of the 18th, reaching ¥159.45-46 as of noon, with the dollar stronger and the yen weaker than the previous day. At times, dollar buying and yen selling by domestic importers prevailed ahead of the midpoint rate fixing.
In overseas markets the previous day, the dollar-yen rate rose gradually from the ¥158.80 range to around ¥159.60 against a backdrop of higher crude oil futures and U.S. long-term interest rates, while WTI futures remained near their highs.
The backdrop to the market was the impasse in talks between the United States and Iran to end the fighting, with the 60-day negotiation period expiring on the 17th. Reports concerning developments in the two countries have been affecting the crude oil market.
Expectations for the normalization of shipping through the Strait of Hormuz, a key crude oil transportation route, receded, and domestic securities firms pointed to upward pressure on the dollar-yen rate. Near-term WTI futures remained around $85 per barrel.
In the foreign exchange market, the ¥160 level has increased concerns about intervention as a psychological threshold in response to dollar strength and yen weakness, becoming a factor limiting further gains. The euro rose against the yen but weakened against the dollar.