Concerns about the prolongation of Middle East conflicts recede, as a reversal of “safe-haven” dollar buying in times of crisis takes precedence.
【3/31Market Overview
Tokyo time, the USD/JPY rose to as high as159.97yen amid observed dollar buying by domestic real demand players at quarter-end. However, when the WSJ reported that “President Trump is preparing for the end of the war even without a removal of the blockage of the Strait of Hormuz,” the USD/JPY retreated to159.49yen. In European hours, following President Trump’s remarks, hopes for an end to the US-Iran conflict rose, and a move to unwind safe-haven dollar buying spread.NYTime, with London fixing at month-end and quarter-end (Japan time240:00time) seen dollar-buying flows, briefly breaking below the previous low159.33yen and slipping to as low as158.90yen. Subsequently, reports that President Pékesi (likely meaning Peshehian-Iranian leader) said “If there is a guarantee, we are ready to end the war” sparked a stronger trend of oil price declines, stock gains, and dollar weakness, pushing USD/JPY down to158.66yen.159.33yen and slipping to as low as158.90yen. Subsequently, reports that President Pékesi (likely meaning Peshehian-Iranian leader) said “If there is a guarantee, we are ready to end the war” sparked a stronger trend of oil price declines, stock gains, and dollar weakness, pushing USD/JPY down to158.66yen.
【4/1Market View