Dollar-Yen Range-Bound as Oil Prices and Yen Sentiment Clash

The dollar-yen pair traded in a narrow range on April 24th, stuck between 163.70 and 163.80. The morning session saw yen-selling by importers around the effective 'five-tenth' settlement day, pushing the pair up to 163.90. However, Japan's Finance Minister Satsuki Katayama intervened with a warning against yen weakness, stating that Japan would respond appropriately if needed.

The afternoon session saw dollar selling due to a decline in U.S. long-term interest rates triggered by a drop in crude oil prices. The WTI crude oil futures dropped to the low $90-per-barrel range, causing U.S. long-term yields to fall to 4.68%. This led to dollar selling, but the pair's downside was limited due to persistent yen-bearish sentiment and safe-haven dollar demand.

Market sources noted that bargain-hunting emerged as market participants who had missed the boat on buying the dollar-yen took advantage of the weakness. Some FX brokerages suggested that the pair could test the 164 level after the evening hours when overseas players enter the market.