Dollar briefly hits 160.27 yen, highest since July 31, on rising oil prices and U.S. yields

The dollar traded around 160.18 yen in New York foreign exchange trading on the 1st, up about 45 sen from the previous day, reflecting dollar strength against the yen. The euro stood around 185.68 yen, up about 10 sen from the previous session.

The dollar briefly weakened to 159.90 yen after the Institute for Supply Management (ISM) released its August U.S. manufacturing index and the Labor Department published July Job Openings and Labor Turnover Survey (JOLTS) data, both falling below market expectations. However, the dollar found support after Federal Reserve Governor Barr said in a speech that "if inflation does not decline quickly, the Fed will face a time when it should raise interest rates." The dollar drew further buying on safe-haven demand after reports that U.S. forces launched new airstrikes against Iran. U.S. crude oil futures surged on concerns over potential Middle East supply disruptions, and resulting inflation fears pushed U.S. long-term yields to a 20-month high, prompting additional dollar buying. The dollar briefly touched 160.27 yen, its highest since July 31.

Against the greenback, the euro traded around 1.1593 dollars, down about 0.0025 dollars from the previous day, reflecting dollar strength.

Source: MINKABU PRESS

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