Against the backdrop of “dollar-buying due to tensions in the Middle East,” the dollar/yen rebounded on the strong U.S. economic indicators.

【3/5Market Overview

During Tokyo time, the dollar/yen declined from the “flight-to-dollar” unwind, briefly156.45to the yen, but with lingering caution over Middle East tensions and as the outside-hours crude oil futures price remained firm, after the initial selling the dollar was bought back. In European hours, following some reports that Iran was ready to abandon its nuclear program depending on the conditions offered by the U.S., broad dollar selling led the dollar/yen to156.89yen, but with Middle East tensions intensifying, the risk-off dollar-buying remained likely and the downside was limited.In the NYtime, last week’s U.S. initial jobless claims and10–12month Nonfarm Productivity10–12month unit labor costs came in stronger than expected, pushing dollar buying higher and sending the dollar/yen to157.85yen.

【3/6Market View