Dollar-Yen Falls to 154.89 on Crude Oil Decline

The dollar-yen pair traded softer in Tokyo's afternoon session on the 16th, reaching a low of 154.89 yen per dollar as WTI crude oil futures declined in after-hours trading.

However, market participants noted that the move remained within the scope of position adjustment and the downside was limited.

In contrast, the morning session saw the pair trade at 155.36-155.38 yen, up 48 sen from the previous day's close, as U.S. crude oil futures climbed to their highest level in roughly four months.

The rise in oil prices fueled yen selling on concerns about deteriorating economic conditions in Japan, a major crude oil importer, and the widening U.S.-Japan interest rate differential was also on traders' minds.