Dollar-Yen Breaks Key Level on Crude Oil Rally and Rate Hike Expectations

The dollar-yen pair has broken through its key 200-day moving average, surging to as high as 158.46 yen per dollar in New York trading. This represents the weakest level for the yen against the dollar since July 31.

Rising US long-term interest rates, driven by higher crude oil prices, combined with renewed expectations for an additional rate hike this year, have accelerated dollar buying.

The pair had briefly fallen below the 200-day moving average at 158.06 yen following coordinated intervention by Japanese and US authorities aimed at correcting yen weakness, but it was reclaimed within days.