Dollar Hits 2-Month High above 159 Yen on Middle East Woes

Tokyo, March 12 (Jiji Press)–The dollar hit a two-month high above 159 yen in Tokyo trading Thursday, lifted by safe-haven buying amid concerns over a possible prolonged Iran conflict. At 1 p.m., the greenback stood at 159.02-03 yen, up from 158.23-24 yen at 5 p.m. Wednesday. Uncertainties were fueled by crude oil futures remaining high despite member countries of the International Energy Agency agreeing to release their oil reserves in hopes of curbing soaring prices, market sources said. Yen selling also spread on the back of worries that Japan, a major resources importer, would suffer a larger trade deficit as a result of the de facto closure of the Strait of Hormuz. While speculation remains among market players that the Japanese government and the Bank of Japan may launch a currency intervention, anticipation that the central bank may implement a rate hike anytime soon has diminished. “The dollar may rise further to top 160 yen,” an official of a Japanese securities firm said. Meanwhile, the Tokyo stock market succumbed to selling pressure on Thursday, with the benchmark Nikkei 225 stock average temporarily giving up over 1,200 points. The wave of selling was brought on by concerns that surging oil prices may cause a deterioration in corporate earnings and a rise in the cost of living. END [Copyright The Jiji Press, Ltd.]