U.S. forex recap: Dollar briefly surges to 158.20 yen on rising crude oil prices

The dollar traded near 158.09 yen in New York on Oct. 1, up nearly 70 sen from the previous day. The euro stood at around 177.75 yen, down about 60 sen against the Japanese currency.

The U.S. Institute for Supply Management (ISM) released its September manufacturing sentiment index, which fell 0.1 point from the previous month to 54.5, marking a three-month low. Minneapolis Federal Reserve President Kashkari remarked that he had "no strong opinion" on whether an additional rate hike should be decided at the Oct. 27-28 meeting, tempering expectations for further Fed tightening and pushing the dollar temporarily lower to the 157.20 yen range. However, when The Wall Street Journal reported, citing U.S. government officials, that "the United States plans to deploy a third carrier strike group and Marine Corps vessels to the Middle East," U.S. crude oil futures rose and safe-haven dollar buying emerged. Yen selling driven by concerns over a deteriorating Japanese trade balance - given the country's heavy reliance on energy imports - also contributed, lifting the dollar to the 158.20 yen range at one point. Meanwhile, the euro came under selling pressure against both the dollar and the yen amid heightened concerns over France's fiscal outlook.

The euro stood at $1.1244 against the dollar, down about $0.0085 from the previous day.

Source: MINKABU PRESS

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