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Tokyo FX: Dollar Hovers Near 159.70 yen as Markets Await Developments Ahead of Ceasefire Deadline
The dollar changed hands at 159.68 yen as of 3:00 p.m. in Tokyo on the 13th, up approximately 35 sen from 5:00 p.m. late Friday.
The greenback drew early safe-haven bids following the collapse of U.S.-Iran peace talks held in Pakistan on the 11th and 12th. After U.S. President Trump stated on the 12th that the U.S. Navy would begin blocking shipping through the Strait of Hormuz, off-hours crude oil futures surged, prompting yen selling on fears of a widening Japanese trade deficit due to the nation's heavy reliance on energy imports. The dollar-yen pair briefly touched 159.85 yen shortly after 8:10 a.m. However, market participants turned cautious about chasing the dollar higher after Pakistani Deputy Prime Minister and Foreign Minister Dar pledged continued commitment to mediation efforts, preferring to await developments ahead of a ceasefire deadline around the 21st, based on a two-week truce reached on the 7th Eastern Time. Wariness of potential yen-buying intervention by Japanese authorities also capped gains, keeping the pair anchored mostly around 159.70 yen in the afternoon.
The euro traded at $1.1688, up roughly $0.0010 from late Friday. Against the Japanese currency, the euro stood at 186.63 yen, gaining just over 50 sen.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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