Dollar-yen remained firm into the afternoon but stalled just below ¥158, with gains capped by receding geopolitical risks and factors weighing on the dollar.
Dollar-yen remained firm into the afternoon and was bought up to ¥157.99 at one point. Selling on rallies intensified ahead of the key ¥158.00 level, however, capping gains. While concern over the situation in the Middle East eased gradually over the weekend, declines in crude oil futures in after-hours trading in the New York market also prompted yen selling at times.
Euro-dollar rose to the ¥1.1180 range in line with the sharp drop in crude oil prices. Pound-dollar fell below 1.3380 before noon, then recovered to the ¥1.3400 range in the afternoon as the dollar weakened. The crosses were bought back in line with dollar-yen, and euro-yen rebounded to the first half of the ¥176 range.
The Nikkei recovered from its sharp morning drop and at one point rose more than ¥300 again in the afternoon, but this capped gains in dollar-yen.
Overall, yen selling and dollar selling progressed during afternoon trading as risk sentiment shifted, but selling on rallies around ¥158 weighed on the market.