The yen showed no reaction to factors supporting yen strength, and USD/JPY fell to the mid-¥159 range in morning Tokyo trading. Although rising crude oil prices and long-term interest rates provided signals for yen selling, yen buying remained dominant and there was no significant market reaction.
USD/JPY fell to around ¥159.73 in morning Tokyo trading. Although expectations for a US rate hike in September increased, dollar buying did not gain momentum and yen buying prevailed.
Crude oil prices are rising amid clashes between the US military and Iran, while Japan’s long-term bond yield rose to near 2.95%, approaching its highest level since October 1996. These developments provided signals for yen selling, but the yen showed no significant reaction.
EUR/JPY moved toward yen strength to around ¥185.17, GBP/JPY to around ¥216.33, AUD/JPY to around ¥114.44, and NZD/JPY to around ¥94.33.
Among the factors released today, the overall reaction to factors supporting yen strength and yen selling was limited, and the market remained range-bound.