Tokyo forex: Dollar trades around 160.20 yen, fluctuates amid Middle East tensions

The dollar-yen exchange rate in the Tokyo foreign exchange market stood at around 160.24 yen per dollar as of 10:00 a.m. on Tuesday, up about 2.00 yen on a stronger dollar and weaker yen compared with 5:00 p.m. Monday.

In the New York foreign exchange market on Monday, the dollar-yen rate finished trading at around 160.16 yen per dollar, down about 10.00 yen on a weaker dollar and stronger yen compared with the end of the previous week. Dollar buying was prompted by rising U.S. long-term interest rates amid growing expectations of interest rate hikes by the Federal Reserve Board (FRB).

Following reports that both Iran and Israel had halted attacks, the unwinding of safe-haven dollar buying was observed, though the downside remained limited. Lingering expectations of further rises in U.S. long-term interest rates clashed with concerns over potential foreign exchange intervention by the Japanese government and the Bank of Japan, continuing to pressure the upside of the dollar-yen pair. During Tokyo trading hours, back-and-forth movements continued above 160.00 yen per dollar, with the pair temporarily pushed up near 160.27 yen ahead of 10:00 a.m.

The euro traded at around 1.1531 dollars against the dollar, up about 0.0015 dollars on a stronger euro and weaker dollar compared with 5:00 p.m. Monday. Against the yen, the euro stood at around 184.77 yen, up about 25.00 yen on a stronger euro and weaker yen.

Source: MINKABU PRESS

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