Dollar-Yen Trades Steadily Above 157 Yen Amid Crude Oil Surge

The dollar-yen pair showed resilience in the upper 157-yen range during Tokyo morning trading on February 28th. Despite briefly dipping below 157 yen in overseas markets late last week, the pair found support from month-end real demand buying and a surge in crude oil prices.

Rising U.S. long-term interest rates also contributed to the dollar-yen pair's stability, trading at 157.67-68 yen around midday. The pair was down 41 sen from late Friday afternoon levels, reflecting a slightly stronger yen.

Market participants noted that speculation of yen-selling and dollar-buying by Japanese importers served to cap yen gains. The ongoing crude oil surge was also seen as a burden on the yen, with expectations that it would worsen Japan's trade balance.