The Middle East situation has become even more tense, and the USD/JPY has risen to the mid-160s.

【3/27Market Overview

Tokyo time, the dollar/yen rose to159.70yen on concerns about the Middle East situation, but when Finance Minister Kanda said there were “speculative moves dragged by oil-related events in the currency market” and that he would respond firmly, including taking resolute measures, the rate fell to159.46yen. However, after selling eased, the Nikkei stock average recovered to the plus side, and with US Treasury yields rising in after-hours trading, the dollar briefly rose to10year highs,159.97yen. In European trading, the dollar/yen traded in the159yen zone, hovering around the upper 150s. As the key psychological level of160yen approached, there was strong caution about government and Bank of Japan currency intervention, resulting in nervous moves.NY time, the United States and Israel bombed multiple nuclear-related facilities and a steel plant in Iran. Iran also continued attacks across the Persian Gulf region and showed no willingness to meet President Trump’s demands. The Islamic Revolutionary Guard Corps (IRGC) said it had “closed the key oil shipment route, the Hormuz Strait,” warning that it would take “strict measures” against ships attempting to pass through the strait. The Middle East situation became even more tense, and crude oil futures rose1barrel =101dollars,NYDow Jones fell briefly to around900dollars. In the currency market, a “safe-haven dollar buy” dominated, and the dollar/yen rose briefly to160.41yen.

【3/30Market View