Dollar Reaches Mid-159 Yen Range Amid Elevated Oil Prices and Stalled Middle East Talks
The dollar rose against the yen in Tokyo foreign exchange trading on the morning of the 18th, supported by buying from real-demand players. The dollar traded in the mid-159 yen range, up 50 sen from 158.95-95 yen at 5 p.m. the previous day.
The dollar's strength and the yen's weakness are attributed to concerns over a deteriorating trade balance for energy-importing Japan due to stalled Middle East talks between the US and Iran. The talks expired on the 17th, with President Trump indicating he would not seek an extension of the memorandum.
New York crude (WTI) futures continued to trade in the elevated $84-85 per barrel range, exerting upward pressure on the dollar-yen pair. A domestic securities firm noted that this level is 'exerting upward pressure on dollar-yen.' However, concerns over potential currency intervention by Japanese monetary authorities capped the upside, preventing the dollar from reaching 160 yen.
The euro rose against the yen after 9 a.m., but weakened against the dollar. As of noon, the euro stood at 184.65-66 yen, up slightly from 184.48-49 yen at 5 p.m. the previous day.