Foreign exchange summary: Dollar rises to 160.30 yen range on safe-haven buying amid geopolitical tensions

The dollar-yen exchange rate in Tokyo was trading around 160.32 yen as of 10:00 a.m. on Monday, up nearly 0.40 yen from 5:00 p.m. last Friday, reflecting a stronger dollar and a weaker yen.

In New York on Friday, the dollar-yen rate closed at around 160.29 yen, up nearly 0.30 yen from the previous session. Strong May U.S. non-farm payrolls fueled speculation that the Federal Reserve Board (FRB) could raise interest rates later this year, lifting the currency pair to a temporary high of 160.34 yen.

Greenback buying and yen selling also dominated Tokyo trading on Monday, with the rate touching 160.35 yen shortly after 7:20 a.m. Safe-haven dollar demand gathered momentum following the Israeli military's announcement on Sunday that "multiple missile attacks were launched from Iran." Additionally, higher U.S. crude oil futures in electronic trading weighed on the yen amid concerns over Japan's widening trade deficit. However, safe-haven bids for the yen triggered by a sharp decline in the Nikkei Stock Average capped further gains in the dollar-yen rate.

Against the dollar, the euro was trading at around 1.1534 dollars, down approximately 0.0100 dollars from 5:00 p.m. last Friday. Against the yen, it stood at around 184.91 yen, down approximately 1.15 yen.

Source: MINKABU PRESS

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