Dollar-Yen Soars on Oil Price Rally and Rising US Yields

The dollar-yen pair traded firmly in European foreign exchange markets on the 14th. As of 22:00 Japan time, it stood at 154.86 yen per dollar, roughly 30 sen stronger than the 154.56 yen level recorded at 20:00.

Gains in WTI crude oil futures and a rise in U.S. 10-year Treasury yields fueled yen selling and dollar buying, pushing the pair to an intraday high of 154.89 yen. The rally in crude oil prices was driven by reports that Saudi Arabian oil pipelines had been damaged in an attack.

The damage is expected to keep a majority of capacity offline for several weeks pending repairs, heightening supply concerns and lifting oil prices. In turn, U.S. long-term yields rose higher, encouraging dollar buying.