The dollar weakened against the backdrop of a sharp drop in oil prices, while dollar-yen remained firm in the upper ¥157 range. Reports concerning Iran and market views ahead of the US midterm elections also influenced sentiment.
In today's New York market, dollar-yen remained firm in the upper ¥157 range. The sharp drop in oil prices brought the risk-off dollar rally to a pause, partially easing downward pressure on the yen alongside movements in the cross-yen rates. Although no direct factors supporting the dollar were evident, some observers said that oil price movements and AI-related stocks were determining the dollar's direction.
According to reports, President Trump indicated that he wanted to assess the diplomatic negotiations before resuming attacks on Iran, while news that Iran's supreme leader had approved peace talks was cited as a source of reassurance for the market. Some observers said this helped support the decline in oil prices, offsetting factors weighing on the dollar.
The euro recovered against the dollar, rising temporarily to around $1.1240. Euro-yen also recovered to the ¥177 range at one point on the rebound and is currently trading in the upper ¥176 range. Uncertainty surrounding the European economy and interest-rate differentials remains, but some observers believe that conditions favorable to the dollar will continue as the US midterm elections approach.
The pound traded in the $1.34 range and temporarily moved above its daily 200-day moving average during London hours. Ahead of this week's Bank of England Monetary Policy Committee (MPC) meeting, market pricing of the outlook for rate hikes is progressing, while some observers said that divisions in the MPC vote and its future policy stance would be the focus for the pound.