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

Tokyo, March 12 (Jiji Press)–The dollar briefly hit a two-month high above 159 yen in Tokyo trading Thursday, pushed up by safe-haven buying amid concerns over a possible prolonged Iran conflict. The greenback slightly pared its gains to stand at 158.89-89 yen at 4 p.m., still up from 158.23-24 yen at 5 p.m. Wednesday. Uncertainties were fueled as crude oil futures prices remained high despite an International Energy Agency agreement to release a record amount of oil reserves by member countries in hopes of curbing soaring oil 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,” a Japanese securities house official said. Meanwhile, the Tokyo stock market succumbed to selling Thursday, with the benchmark Nikkei 225 stock average losing up to over 1,200 points. The Nikkei index finished the day’s session at 54,452.96, down 572.41 points, or 1.04 pct, from Wednesday. The surging oil prices fueled “concerns over the negative impact on corporate earnings and consumption,” an official of a major securities company said. END [Copyright The Jiji Press, Ltd.]