Dollar/yen rose to 159.76 yen on the back of positive U.S. economic indicators amid concerns over Middle East tensions.

【6/1Market Overview

Tokyo time, reports that the U.S. side has tentatively agreed to a memorandum toward ending the conflict with Iran, with Trump demanding several revisions regarding nuclear development and the Hormuz Strait, causing uncertainty about the agreement and pushing up crude oil futures with a safe-haven dollar bid. The dollar/yen rose to temporarily159.50yen, then159yen area remains range-bound in the mid- to upper-150s. In European hours, dollar/yen was159yen range in the mid-150s and became stuck.NYtime, reports that Iran announced it would stop negotiations with the United States in protest of the Israel issue and would completely close the Hormuz Strait, warning of closing the Bab el-Mandeb Strait, sending crude futures sharply higher as the safe-haven dollar bid leads the market.5月米ISMManufacturing PMI came in at54.0vs expected53.1, lifting the dollar/yen to159.76yen, a fresh high since4/30. Afterwards, reports that Hezbollah, an Iran-aligned group in Lebanon, was ready for a full ceasefire with Israel and that Hezbollah told President Trump it would agree to a ceasefire helped crude futures give back some gains. President Trump’s post on hisSNSstating that Hezbollah and Israel had agreed to stop attacks on both sides led to a stall in the dollar/yen, though the downside was limited to159.57yen, and it rose again to159.76yen.

【6/2Market View