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Foreign exchange summary: Dollar briefly rose to 159.70 yen level, intervention concerns cap upside
The dollar traded around 159.67 yen in Tokyo as of 10:00 a.m. on Tuesday, up approximately 0.21 yen from 5:00 p.m. on Monday.
In New York on Monday, the greenback closed near 159.66 yen, up about 0.40 yen from its previous weekend finish. Sentiment was driven by rising U.S. crude futures as negotiations to end hostilities between the U.S. and Iran stalled, pushing U.S. Treasury yields higher on mounting inflation fears. Further fueling the advance, the Institute for Supply Management (ISM) manufacturing PMI for May hit a three-year high, triggering broad dollar buying.
During Tuesday's Tokyo session, the dollar-yen pair lacked clear direction, ticking up to a morning high of 159.72 yen shortly after 9:50 a.m. In the absence of fresh trading catalysts, investors remained on the sidelines to monitor geopolitical developments in Iran. Concurrently, lingering caution over potential yen-buying intervention by the Japanese government and the Bank of Japan effectively capped the greenback's upside.
Meanwhile, the euro traded around 1.1631 dollars, down roughly 0.0026 dollars from Monday's 5:00 p.m. level. Against the Japanese currency, the common currency stood near 185.72 yen, down approximately 0.17 yen.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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