In the New York FX market, the dollar rebounded alongside higher crude oil prices, with dollar/yen recovering to the ¥157 range. Higher crude oil prices pushed up the dollar in tandem with movements in European and US markets.
In the New York FX market, the dollar rebounded alongside higher crude oil prices. Dollar/yen fell temporarily to the upper ¥156 range before recovering to the ¥157 range. Against the backdrop of movements in European markets and US supply trends, foreign exchange movements were driven mainly by the dollar.
US crude oil futures rose temporarily to $95.54 before holding firm at $94.28, with the rise in energy markets encouraging dollar buying in the FX market. The US 10-year Treasury yield rose to 5.22%, and interest-rate developments also contributed to the dollar’s firmness.
Dollar/yen fell temporarily to ¥156.51 in European trading before recovering to ¥157.23. Against currencies other than the yen, euro/dollar fell from $1.1381 to $1.1363, while sterling/dollar fell from $1.3267 to $1.3247.
As a reported policy development, information circulated that US President Trump was seriously considering a ban on diesel exports, which may have affected both the energy and foreign exchange markets.