In the foreign exchange market from tonight through tomorrow, the dollar-yen pair is likely to see continued "safe-haven dollar buying" amid views that the conflict between the United States and Iran will be prolonged. The expected range is 159.70 yen to 161.50 yen per dollar.

U.S. news site Axios reported that "President Trump is expected to receive a briefing on the 30th from Central Command Commander Cooper regarding new plans on the possibility of military action against Iran," which is likely to spur buying of the dollar as the key currency in a flight to quality. If U.S. crude oil futures gain further momentum, the yen could be sold on speculation of a worsening Japanese trade balance, as the country relies on imports for most of its energy needs.

While there is some wariness of intervention after Finance Minister Satsuki Katayama stated at a press conference following the Cabinet meeting on the 28th that "forex operates 24 hours a day, even during holidays," market participants believe the possibility of actual intervention is low, given that the dollar-yen rise is driven by "safe-haven dollar buying" during a crisis. In addition, the hawkish stance shown at the Federal Open Market Committee (FOMC) meeting held through the 29th is also likely to support the dollar.

Meanwhile, tonight in Japan Standard Time, the U.S. will release the Personal Consumption Expenditures (PCE deflator) for March, the preliminary real Gross Domestic Product (GDP) for the January-March quarter, the Employment Cost Index for the January-March quarter, initial jobless claims for the previous week, the Chicago Purchasing Managers' Index for April, and the Composite Index of Leading Indicators for March.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.