The Middle East situation remains tense and the dollar-yen pair extended its gains for a third day.

【3/12Market Overview

Tokyo time, the dollar/yen rose as WTI crude futures prices moved higher in after-hours trading159.23to the level of 159.23 yen. As it approached the Tokyo Fix, the rise stalled, and the 10-year U.S. Treasury yield declined, pulling the pair down to158.79yen. After that, it moved little around 159 yen. In European hours, once the after-hours crude futures price fell below90dollars, the dollar/yen fell to158.56yen.NY time, Iran’s state television released the first statement from Mojtaba, elected as the new Supreme Leader of Iran following the assassination of Ayatollah Khamenei. In that statement, Mojtaba said, “The Strait of Hormuz should remain closed,” and that “if the war persists, other fronts will open,” reaffirming a stance of taking a resolute stance against the United States. With supply concerns stemming from the Middle East tensions, crude futures rose to around97 dollars,NY indices plunged. The dollar/yen was led by “safe-haven dollar buying,”159.43yen rose to,1/14 year-to-date high159.45yen approached.

【3/13Market Commentary