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USD/JPY rises above 163.00 for first time since 1986
The move is driven by safe-haven demand for the dollar amid renewed Middle East tensions, with the pair also pushed by higher oil prices.
USD/JPY climbed near 163.00 on Tuesday, briefly reaching 163.04, marking its first trade above the 163.00 level since December 1986, according to FXStreet.
FXStreet links the dollar’s strength to safe-haven demand as investors weigh renewed Middle East tensions and rising oil prices, even as softer US data signals cooling momentum, with ADP Employment Change on a four-week average falling to 16.5K from 19.25K.
Recent softer US inflation data has also reduced expectations for more aggressive Federal Reserve tightening, but geopolitical uncertainty and ongoing weakness in the Japanese yen have kept USD/JPY near multi-decade highs and raised the risk of Japanese authorities intervening.
FXStreet adds that Scotiabank strategists said policymakers remain concerned about the possibility of official intervention, or even comments that threaten action, and noted Japan is scheduled to deliver June trade figures later in the session ahead of CPI data.
Latest closeUSD/JPY 162.33 ▲0.2%