On the afternoon of the 12th, ahead of the US CPI release, dollar-yen trading in the Tokyo market continued to move sideways in the low ¥159 range, with concerns over intervention by the government and Bank of Japan, along with crude oil trends, influencing the market.
In the Tokyo foreign exchange market on the afternoon of the 12th, the dollar traded at ¥159.39–40 against the yen, up about ¥0.91 from the previous business day, while movements remained limited in the low ¥159 range.
In the morning, the dollar generally traded in the ¥159.20–30 range. Dollar buying and yen selling by domestic importers were reportedly dominant ahead of the exchange rate fixing, pushing the dollar up to around ¥159.35. After buying subsided, the dollar eased back to the ¥159.20 range, but subsequently rose to around ¥159.45 while traders monitored movements in WTI crude oil futures.
In the afternoon, the dollar continued to trade near its highs in the ¥159.30–40 range, but gains were capped. As the ¥160 level approached, concerns over intervention by the government and Bank of Japan grew, while a mood of wanting to assess the US CPI results spread. Some market participants reportedly refrained from active trading.
WTI futures at one point rose into the $84-per-barrel range amid views that negotiations toward an end to the fighting between the United States and Iran would be difficult, but gains stalled in the afternoon, which was seen as a factor limiting the dollar's upside against the yen. The euro moved little against both the yen and the dollar. The dollar-yen market may resume moving depending on the US CPI release, according to some views.