Dollar/yen rises to 160.09 yen on dollar buying amid Middle East tensions and solid U.S. economic indicators.

【6/3Market Overview

During Tokyo time, the USD/JPY rose to159.99yen amid higher crude oil futures prices in after-hours trading. Later, wary of possible yen-buying intervention by Japanese authorities, the pair slipped to159.82yen. In European trading, following Prime Minister Kishida’s warning that the currency market will respond appropriately as needed, the USD/JPY fell to159.54yen. Subsequently, Bank of Japan Governor Ueda, in a speech, stated that “if the risk of upside price pressures is judged to be higher than the risk of downside growth, there is a need to thoroughly discuss whether to raise rates,” showing a pro-early rate-hike stance, and the USD/JPY declined to159.35yen. However, there was no continuation selling, and buybacks gradually led the market upward.NYTime, as negotiations toward ending conflicts between the U.S. and Iran stall, exchanges attacks between the two sides, pushing up crude-oil futures prices. In the FX market, “safe-haven dollar buying” was dominant.5月米ISM非製造業景況指数 (ISM Non-Manufacturing Index) came in at54.5versus expectations of53.8, lifting the USD/JPY to160.09yen near the close.

【6/4Market View