Business · Markets · 2 hrs ago
Yen falls as high oil prices raise concerns over Japan's trade balance
The yen weakened in early Tokyo trading, reaching 158.28–30 per US dollar at 8:30 a.m.
on October 21.
That was 21 sen weaker than at 5 p.m.
the previous day, and the yen also fell against the euro.
US crude prices remained near $98 a barrel, above the previous settlement of $97.82.
Japan imports most of its energy, so expensive oil can worsen its trade balance and put pressure on the yen.
Uncertainty over the Iran conflict kept oil prices high, despite reports of diplomatic contacts involving Iran and Pakistan.
Reports that a US-Iran agreement was close were described by people familiar with the talks as incorrect, and the talks were continuing.
The yen weakened against the US dollar in Tokyo trading on October 21 as high oil prices raised concerns about Japan’s trade balance.
At 8:30 a.m., the dollar was worth 158.28–30 yen, a 21-sen fall in the yen from the previous day’s 5 p.m. level.
The yen also fell against the euro, reaching 177.72–74 yen per euro.
Oil prices remained high amid uncertainty over the Middle East, while Japan relies on imports for most of its energy.
- Who
- The yen weakened against the US dollar and the euro.
- What
- High oil prices fueled concern that Japan’s trade balance would worsen, putting pressure on the yen.
- When
- October 21, 2026, at 8:30 a.m. Japan time.
- Where
- The Tokyo foreign exchange market.
- Why
- Japan imports most of its energy, and high oil prices raised concern about its trade balance.
This story does not have two clearly opposing sides.
US crude futures were in the $60s before fighting began between the United States, Israel and Iran.
Iranian media reported that President Pezeshkian met Pakistan’s Army Chief Munir.
Bloomberg reported that people familiar with US-Iran talks said reports of an imminent agreement were wrong.
The dollar traded at 158.28–30 yen and the euro at 177.72–74 yen in Tokyo.
- Dollar exchange rate
- 158.28–30 yen at 8:30 a.m. on October 21
- Change against dollar
- Yen down 21 sen from the previous day’s 5 p.m. level
- Euro exchange rate
- 177.72–74 yen at 8:30 a.m. on October 21
- WTI crude
- December futures traded in the low $98 range per barrel
- Japan’s energy imports
- The country relies on imports for most of its energy
1 source
What people are saying
Reports that an agreement is near are wrong