Week in review

The USD/JPY opened the week at 159.18. The pair started with a firmer dollar tone on the back of developments in the Middle East over the weekend, but it remained top-heavy and fell back to above 158.50. Dollar buying then strengthened after expected ceasefire talks between the US and Iran failed to materialize, lifting the pair back into the lower 159 range. Direction remained elusive after that, much like the situation in the Middle East itself. The USD/JPY gradually rose above 159.50 on 23 April as oil prices rose and the dollar strengthened amid a sense of stalemate in the Middle East. The pair briefly fell back below 159.50 after renewed intervention warnings from Finance Minister Satsuki Katayama, but reports that the US would attack vessels laying mines in the Strait of Hormuz then lifted it to this week's high of 159.84. The pair was nearing that level again at the time of writing on 24 April (Figure 1). The dollar was broadly firm against G10 currencies this week. Higher oil prices also kept the Norwegian krone and Canadian dollar relatively firm as petrocurrencies (Figure 2).

FIGURE 1: USD/JPY

Note: As at 13:00 JST on 24 April
Source: EBS, Refinitiv, MUFG

FIGURE 2: MAJOR CURRENCIES' RATE OF CHANGE VS USD THIS WEEK

Note: As at 13:00 JST on 24 April
Source: Bloomberg, MUFG