Dollar Strengthens Against Yen Amid Iran Negotiations Impasse

The US dollar strengthened against the yen in Tokyo trading on the 18th, climbing to the mid-159 yen range. The gain was fueled by buying from real-demand players and selling of the yen due to concerns over a deteriorating trade balance for energy-importing Japan.

The dollar-yen pair traded at 159.45-46 yen as of noon, up 50 sen from 158.95-95 yen at 5 p.m. the previous day. The move was supported by gains in crude oil futures and US long-term interest rates.

The backdrop to the market moves is the impasse in US-Iran negotiations aimed at ending hostilities. The 60-day negotiation period expired on the 17th, with President Trump indicating he would not seek an extension of the memorandum.