Dollar-Yen Falls Amid Middle East Risk, Crude Oil Surge
The dollar-yen exchange rate dipped to the mid-159 range in Tokyo trading on August 12, reaching its weakest level in about two weeks. The pair was driven lower by surging crude oil prices and elevated U.S. interest rates, fueled by prolonged instability in the Middle East.
West Texas Intermediate (WTI) crude oil futures climbed above $84 per barrel, stoking concerns over a deteriorating trade balance for energy-importing Japan and fueling yen selling and dollar buying.
The dollar-yen pair steadily edged higher from 159.20 to 159.43 in the morning session, but its gains were trimmed as it approached the psychologically critical 160-yen mark due to intervention jitters.
Market voices noted that 'with intervention jitters simmering, there is a lack of catalysts to test the 160 level.'