Dollar-yen fell in the morning but later rebounded and traded in the ¥158 range. Concern over the situation in the Middle East, movements in the Nikkei and Trump's announcement affected the market.
Dollar-yen rose to around ¥158.00 at one point in the morning before being sold down to ¥157.70. The pair moved lower in the early morning, then rebounded and reached ¥158.15. In the afternoon, it was pushed back toward around ¥158.00 again, with trading settling into a defined range.
Movements in other major currencies, including euro-yen, euro-dollar and pound-dollar, also contributed to an overall market in which traders refrained from aggressively pursuing gains or selling into declines. In particular, other pairs often remained within narrow ranges in response to dollar-yen movements.
Yen buying led the market amid concern over the situation in the Middle East and stock-price movements, but paused as the Nikkei Average narrowed its decline from the previous day. This was seen as slightly easing overall risk aversion in the foreign-exchange market.
President Trump’s announcement of a temporary suspension of sanctions on Russia also affected risk appetite, while a pause in the rise in crude oil prices at times provided support for dollar-yen. The market was seen returning to calmer trading in the afternoon.