Dollar-Yen Pauses in 159 Range as Oil Prices and Yields Provide Support

The dollar-yen pair showed resilience in Tokyo foreign exchange trading on the afternoon of the 17th, recovering modestly to the lower 159-yen range.

Crude oil prices and U.S. long-term interest rates provided support for the dollar, but option-related selling around the mid-159-yen level kept the market lacking clear direction.

Dollar-yen traded within a range of 158.95 yen to 159.36 yen from morning through afternoon, with some upside pursuit limited despite reclaiming the 159-yen level in the afternoon.

The U.S. 10-year Treasury yield held firm, underpinning dollar buying on the back of the Japan-U.S. interest rate differential, while trading was generally thin and market participants widely noted a wait-and-see sentiment prevailing.