Dollar-yen supply and demand seen from geopolitical risk!
10/11When the news that the Japan Committee of the Victims of the Atomic Bomb and Peace Award received the Nobel Peace Prize spreads, it is observed that the global military tensions, including the potential use of nuclear weapons, are shifting toward easing, leading to active unwinding of risk-averse yen-buying positions, and the USD/JPY exchange rate recovered to the 149 level.149Furthermore10/14As news spread of Hizbullah's airstrikes in northern Israel and China's military exercises surrounding Taiwan, demand for dollars in crisis conditions strengthened, and the USD/JPY exchange rate rose to the upper 149 range.149We analyze the dollar-yen exchange dynamics seen through geopolitical risks and explain the outlook for the dollar-yen rate going forward.