Tokyo forex summary: Dollar-yen hovers around 159.80, limited reaction to rising yields

The dollar stood around 159.88 yen in Tokyo foreign exchange trading at 3:00 p.m. on the 1st, up about 0.32 yen from 5:00 p.m. the previous day, reflecting yen weakness. The euro traded around 185.59 yen, also up about 0.48 yen from the previous day's close.

Rising Middle East geopolitical tensions pushed U.S. crude oil futures higher. U.S. long-term yields also rose in off-hours trading, supporting the dollar against the yen. However, with the pair hovering near the key 160 yen level, market participants remained wary of potential yen-buying intervention by Japanese authorities, capping dollar upside.

Finance Minister Satsuki Katayama met with U.S. Treasury Secretary Bessent on the sidelines of the G20 finance ministers and central bank governors meeting. She reportedly confirmed that an orderly currency market is essential for global financial stability. Although Japan's long-term interest rates briefly rose above 3% during the session, the foreign exchange market reaction remained limited.

The euro traded around 1.1608 dollars against the greenback, up about 0.0007 dollars from the previous day.

Source: MINKABU PRESS

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