Late in the New York session, dollar-yen was reported trading around ¥159.60, with the pair continuing to gradually probe a recovery toward ¥160. Rising oil prices, higher long-term interest rates and uncertainty over the situation in the Middle East have been cited as factors behind the move.
Late in the New York session, dollar-yen was trading around ¥159.60. Although the dollar was showing some strength, the overall mood was cautious, and the pair continued to gradually probe a recovery toward ¥160.
A risk-averse mood has spread across the market, with uncertainty over the situation in the Middle East, rising oil prices and higher global long-term interest rates weighing on sentiment. Some observers have also said that higher US Treasury yields at the long end, concerns over fiscal policy and corporate bond issuance related to AI could worsen supply-demand conditions.
The rise in oil prices reflects heightened tensions in the Middle East and concerns over the US president's stance on extending a ceasefire agreement. As dollar-yen approaches ¥160, reports also suggest that the options market is not actively increasing hedges against yen appreciation.
This article conveys a fragmentary view of market conditions, and attention is focused on developments in subsequent updates.