The yen fell to ¥159.79-159.80 per dollar in the Tokyo market early on 1 September. Tensions in the Middle East and higher oil prices heightened concerns about Japan's trade deficit.
The yen fell against the dollar in the Tokyo market early on 1 September, with the rate at ¥159.75-159.80 per dollar as of 8:30 a.m., marking further yen weakness and dollar strength from the previous day.
Crude oil futures rose amid uncertainty over the situation in the Middle East. The prospect of escalating clashes between the U.S. military and Iran, as well as possible retaliation, heightened investor caution and fueled concerns that Japan's trade balance could deteriorate because of its dependence on energy imports.
The pace of yen depreciation remained limited in the foreign exchange market, as concerns about government and BOJ intervention curbed the yen's decline. Expectations for an additional BOJ rate hike also affected the yen's direction.
Attention is focused on U.S. monetary policy. The Federal Reserve's tightening stance, the odds of a rate hike at the September FOMC meeting and this week's U.S. employment report are being watched as factors that could influence the dollar going forward.