Dollar-yen holds near 153.60 as oil and U.S. yields support dollar

  • Dollar-yen held near 153.60 as oil prices and U.S. yields supported dollar buying.
  • $95 crude and 4.81% Treasury yields reinforced demand for the dollar.
  • Bank of Japan reports pointed to a possible 1.25% policy rate on Oct. 17-18.

Dollar-yen held near 153.60 in European trading on the 9th as rising crude oil prices and U.S. long-term yields encouraged dollar buying. NYMEX WTI crude futures climbed above $95 per barrel and the U.S. 10-year Treasury yield rose toward 4.81%, helping limit the yen's recovery. The pair traded between 153.10 and 153.68 in Europe after ranging from 153.24 to 154.01 in Tokyo, where it briefly reached 153.98 before easing. EUR/USD fell toward $1.1620, while EUR/JPY traded between 178.26 and 178.81 in Europe. Reports that the Bank of Japan may raise its policy rate from around 1.0% to approximately 1.25% at its Oct. 17-18 meeting continued to influence yen crosses. Markets are watching U.S. economic data, oil inventories and positioning ahead of the BOJ decision.

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