In the Tokyo market early on the 20th, the yen fell to the mid-¥158 range as buying pressure for the dollar strengthened amid continued high oil prices. The yen weakened against the euro, while the euro rose against the dollar.
In the Tokyo foreign exchange market early on the 20th, the yen stood at ¥158.58–59 per dollar, down 42 sen from the previous day, as crude oil futures strengthened their upward trend amid rising tensions in the Middle East. Concern that Japan's trade balance would deteriorate, given its dependence on energy imports, prompted yen selling. The yen was also sold against the euro, with the euro at ¥177.80–82 at the same time, representing a 84-sen decline in the yen and a corresponding rise in the euro from the previous day. The euro also rose against the dollar, with €1 at $1.1211–12.
The factors driving the market are the sharp rise in oil prices and developments in the Middle East. Reuters reported that Yemen's Houthi armed group had claimed responsibility for multiple attacks targeting energy-related facilities in Saudi Arabia, and front-month WTI temporarily rose to $104.18. In interest rates, the 10-year Treasury yield, a benchmark for long-term US interest rates, was up 0.07 percentage points from the previous weekend at 5.14%, amid growing speculation that the Federal Reserve may raise rates.