Dollar buying prevailed in London trading, sending the yen lower against the dollar. USD/JPY rose into the upper ¥154 range, while EUR/JPY and GBP/JPY also edged higher.
Broad-based dollar buying continued against a backdrop of rising crude oil prices amid heightened tensions in the Middle East and expectations of US rate hikes. The yen weakened against the dollar and also edged lower against European currencies.
USD/JPY did not fall below its early-Tokyo low of around 153.38, and rose in London trading to a new high around 154.74, reaching its highest level since 7 September. Meanwhile, EUR/JPY edged higher in the lower ¥178 range, while GBP/JPY remained firm after rising to a new high around 208.63, following the broader dollar move.
Expectations that the Japan-US interest rate differential will be maintained remain in place, and the yen is expected to remain under persistent selling pressure.
Current levels for the major pairs are approximately 154.56 for USD/JPY, 178.43 for EUR/JPY and 208.46 for GBP/JPY.