The dollar/yen slipped as US CPI forecasts suggested, but due to the uncertainty surrounding Middle East tensions, it rose to the upper 159 yen range.

【8/12Market Overview

Tokyo time, the USD/JPY rose to159.46 yen, but there was no follow-through buying, and it moved only in the low- to mid-159 yen range. In European trading, the USD/JPY, with some reports from Pakistani government sources that “the United States and Iran agreed to extend a 60-day ceasefire based on the Islamabad memorandum,” saw a pullback from safe-haven buying and fell briefly to158.57 yen. However, because the information was unconfirmed, it quickly recovered to around159 yen. In New York time, the7月 CPI (CPI) for the United States was as expected, up+0.1% month-on-month and+3.4% year-on-year, which reduced expectations for a Fed rate hike, sending USD/JPY down to158.64 yen. Subsequently, due to uncertainty stemming from Middle East tensions, the dollar strengthened and USD/JPY rose to159.54 yen.

【8/13Market View