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FX summary: Dollar softens to 158.70 yen range on reports of ceasefire extension discussions
The dollar-yen rate in the Tokyo market was trading around 158.73 yen as of 10 a.m. on the 16th, roughly 0.20 yen lower than the previous day's 5 p.m. close, as the greenback softened against the yen.
In New York on the 15th, the dollar-yen pair closed near 159.00 yen, up about 0.20 yen from the prior day. The pair reached 159.15 yen at one point, bolstered by firm U.S. crude oil futures and rising Treasury yields.
However, dollar selling has since taken the lead in Tokyo. Reports that the United States and Iran are considering a two-week extension to the ceasefire expiring next week have prompted an unwinding of long dollar positions. Intervention fears also weighed on the pair following a meeting between Finance Minister Satsuki Katayama and U.S. Treasury Secretary Bessent on the 15th, pushing the dollar down to the 158.70 yen range by around 9 a.m.
The euro was trading at 1.1808 dollars as of 10 a.m., up roughly 0.0020 dollars from the previous 5 p.m. level. Against the yen, the euro stood at 187.42 yen, up approximately 0.10 yen.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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