In Tokyo morning trading, dollar-yen firmed to around the upper ¥159 range. Higher oil prices are driving yen depreciation, while rising long-term bond yields are also weighing on the yen. Major currency pairs have also moved higher.
In the morning session of the Tokyo market, dollar-yen rose to around ¥159.3, with broad-based yen selling continuing. The move is attributed in part to firm after-hours trading in New York crude oil, with concerns over a widening Japanese trade deficit said to be prompting yen selling.
NY crude oil futures for October traded $0.78 higher from the previous day at $85.79, affecting yen exchange rates in the Japanese market. Long-term bond yields were reported to have risen to around 2.89%.
The euro-yen, pound-yen and Australian dollar-yen rates each moved higher, to around ¥185.80, ¥217.18 and ¥113.96, respectively. Yen selling remains dominant.
Fiscal concerns are also said to be behind the move and are cited as a factor contributing to yen depreciation. The market outlook is seen as likely to be particularly sensitive to developments in crude oil prices and fiscal news.