Business · Markets · 2 hrs ago
Yen weakens to nearly 160 per dollar as oil rises and US rate outlook shifts
The yen fell to 159.80–90 per dollar at the close of trading in New York on Nov.
12, after briefly weakening past 160.
The move extended a decline that left the yen at its weakest level against the dollar since early September.
Higher oil prices added pressure on Japan, which depends on imported energy, after hopes for progress in ending fighting between the United States and Iran faded.
Expectations of US interest-rate rises also supported the dollar, following stronger-than-expected US inflation and comments from Federal Reserve officials.
Higher US interest rates can widen the gap with Japanese rates, making dollar assets more attractive relative to yen assets.
Concern about currency intervention grew near 160, as traders watched for possible yen-buying by Japan’s government or central bank.
The yen recovered slightly after its slide, helped in part by falling US shares, but no intervention was reported.
The yen weakened to 159.80–90 per dollar in New York trading on November 12, after briefly falling to 160.03.
Higher oil prices and stronger expectations of US interest rate increases helped drive yen selling and dollar buying.
A US post about Iran reduced hopes for progress in talks to end fighting, adding to concerns about oil supplies and Japan’s energy-dependent economy.
Stronger-than-expected US inflation and comments from Federal Reserve officials also increased expectations of rate increases.
The yen recovered slightly after reaching 160, amid concern about possible intervention by Japanese authorities and support from falling US stocks.
- Who
- The yen and the US dollar traded lower and higher, respectively; Japanese authorities were watched for possible intervention.
- What
- The yen weakened to 159.80–90 per dollar at the close, after briefly reaching 160.03.
- When
- November 12, in New York trading.
- Where
- The New York foreign exchange market.
- Why
- Rising oil prices, greater expectations of US rate increases and a widening US-Japan interest rate gap encouraged yen selling.
This story does not have two clearly opposing sides.
US consumer prices for October rose more than markets had expected.
Oil prices rose after Donald Trump posted that an agreement with Iran was not necessary, reducing hopes for progress in talks to end the fighting.
Federal Reserve officials expressed concern about inflation and discussed the possible need for rate increases.
The yen briefly reached 160.03 per dollar before closing at 159.80–90.
- Closing exchange rate
- 159.80–90 yen per dollar
- Intraday low for the yen
- 160.03 yen per dollar
- WTI crude
- Rose from the previous day’s level in the $86 range to the $88 range per barrel
- US 10-year yield
- 5.13%, up 0.14 percentage points from the previous trading day
- December rate increase probability
- About 15% for a 0.5 percentage-point increase, according to US short-term interest rate futures market estimates
What people are saying
イランとの合意は必要ない