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Tokyo FX Summary: Dollar trades around \159.50, weakens on reports of Iran ceasefire talks
The dollar-yen exchange rate in the Tokyo foreign exchange market on the 6th stood at around \159.57 per dollar as of 3:00 p.m., roughly \0.02 weaker for the dollar and stronger for the yen compared to 5:00 p.m. the previous week, remaining largely flat. The euro traded at around \183.91 per euro, about \0.30 weaker for the euro and stronger for the yen.
The dollar-yen pair was trading around \159.80 as of 8:30 a.m., but fell to the \159.50 level shortly after 11:20 a.m. Subsequently, the pair continued to fluctuate around the mid-\159 range. U.S. President Trump indicated his intention to launch a major attack if Iran does not agree to reopen the Strait of Hormuz by the night of the 7th. He posted on social media "Tuesday, 8 p.m. Eastern Time," suggesting an attack scheduled for 8:00 p.m. on the 7th (9:00 a.m. Japan time on the 8th). In response, crude oil prices temporarily surged to around $115 per barrel in the morning of the 6th Japan time. The "safe-haven dollar" buying pushed the dollar closer to the \160 level. However, U.S. news site Axios reported that the United States, Iran, and a group of mediator countries in the Gulf region are discussing conditions for a 45-day ceasefire. Following this news, crude oil prices softened, and dollar selling against the yen gained momentum in the currency market.
The euro traded at around $1.1525 per euro against the dollar, roughly $0.0010 weaker for the euro and stronger for the dollar.
Source: MINKABU PRESS
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