The yen fell again to the 1 USD = 160 JPY range on June 3.
According to a report by Japan's Mainichi Shimbun on June 3, the exchange rate of the yen against the dollar dropped again in Tokyo's foreign exchange market today, briefly reaching the 1 USD = 160 JPY range. This marks the first time since about one month before the foreign exchange intervention at the end of April that the yen has touched the 160 JPY level.
Amid uncertainties surrounding negotiations over ending the U.S.-Iran conflict, concerns over Japan's widening trade deficit due to high crude oil prices are believed to have fueled international selling pressure on the yen.
Tasnim News Agency, closely linked with Iran's Revolutionary Guard Corps, reported on June 1 that Iran would suspend communications with the United States through intermediary countries due to the deteriorating situation in Lebanon. In response, U.S. President Trump stated on social media on June 2: "These reports are false; our dialogue continues."
Nevertheless, the future remains uncertain. On June 2, crude oil futures in New York markets continued to rise, with (WTI) crude oil closing at around $93 per barrel.
Recently, prices had remained below the $100 threshold amid expectations of a U.S.-Iran ceasefire agreement, but if negotiations stall, prices could rebound.
According to Japanese government officials, when the yen briefly reached the peak of 1 USD = 160 JPY on April 30, the government and the Bank of Japan intervened in the currency market for the first time in approximately one year and nine months. Just over a month later, the exchange rate is approaching the level prior to the intervention.
The market remains highly vigilant regarding potential renewed intervention.
Original source: toutiao.com/article/1866940499802112/
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