There was a surge in dollar buying due to Middle East tensions and a rise in crude oil prices, leading to yen selling and the USD/JPY approaching the 158 level.
【3/3Market Overview
Tokyo time, the dollar/yen rose toward the fixing with dollar buying157.59to around 157.59 yen, but amid a sharp fall in the Nikkei and other factors,157in the low-157s range as a consolidation. In European trading, on the back of “dollar buying on Middle East tensions” and “yen depreciation due to rising crude oil prices,” the USD/JPY rose to157.97yen.In NY time, reports that the U.S. administration is considering deploying the U.S. military to escort oil and gas tankers through the Strait of Hormuz, and President Trump’s statement on his own SNS that “if necessary, the U.S. Navy will begin escorting tankers through the Strait of Hormuz as soon as possible,” were conveyed, causing crude oil futures to stall, and the USD/JPY fell to157.47yen.157.47yen.
【3/4Market View