In the Tokyo market on the afternoon of the 4th, the yen fell again, with the dollar rising to the upper ¥157 range. The pause in the decline in US long-term yields and movements in crude oil prices were cited as factors weighing on the yen.
In the Tokyo foreign exchange market on the afternoon of the 4th, the yen fell again, with the dollar at ¥157.84–¥157.86 as of 2 p.m., representing a yen decline and dollar gain of approximately ¥0.10 from the previous business day.
The yen-buying and dollar-selling that had reflected expectations of a narrowing US-Japan interest rate differential appears to have slowed as the decline in US long-term yields paused. US long-term yields had fallen at times the previous day against a backdrop of lower crude oil prices, but this day the move lacked enough momentum to prompt renewed yen buying.
Energy prices also weighed on the yen, with US crude oil futures resisting a decline and front-month WTI crude trading in the upper $95 range per barrel. It remained below the previous day's settlement price of $96.09.
Market participants expect movements in US interest rates and crude oil prices to determine the direction of the yen, and are watching developments closely.