Dollar/Yen fluctuates as headlines about Middle East situation drive market moves.

【4/9Market Overview

In Tokyo time, the dollar/yen pair saw early dollar buying ahead of the Tokyo fix, and briefly rose to158.95yen. However, regarding the peace talks between the United States and Iran scheduled for 4/11, there remains strong uncertainty, and there was no active attempt to push higher. In European time, although the United States and Iran reached a two-week ceasefire, Iran strongly protested the continued Israeli attacks on Lebanon. With expectations for progress in the talks fading and crude oil futures rising sharply, the forex market saw safe-haven dollar buying, and the dollar/yen rose to as high as2159.29yen.In NY time, Prime Minister Netanyahu of Israel stated that “Israel has agreed to directly negotiate with Lebanon,” and reports that “Lebanon has requested a temporary ceasefire for negotiations with Israel,” led to a drop in crude oil futures prices, a rally in previously cheap U.S. equities, and a reversal of safe-haven dollar buying in the forex market, bringing the dollar/yen down to158.63yen. Additionally, when Netanyahu stated that “strong attacks on Hezbollah pro-Iran groups in Lebanon will continue” and that “there will be no ceasefire in Lebanon,” reaffirming a hardline stance, dollar buying resumed and the dollar/yen rose to159.13yen.

【4/10Market View