Dollar-yen traded firmly in the Tokyo market on the morning of the 18th, rebounding after falling to the low 159-yen range. The retreat in expectations for peace talks between the United States and Iran, along with concerns about intervention, were cited as factors.
Dollar-yen traded firmly in the Tokyo market on the morning of the 18th, falling to 159.31 before rebounding to 159.54 and remaining broadly within this range throughout the day. Although dollar buying was gaining momentum across the board, concerns about intervention were also in focus.
During the day's trading, dollar-yen moved between 159.31 and 159.54 yen, euro-yen between 184.52 and 184.73 yen, and euro-dollar between 1.1575 and 1.1585 dollars.
The backdrop was the view that expectations for peace talks between the United States and Iran had receded, creating an environment in which the dollar was broadly prone to buying, while concerns about intervention were mounting in the foreign exchange market.
In response to these moves, foreign exchange market participants indicated that they were watching future diplomatic developments and intervention risks.