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Yen weakens as Brent rises and USD/JPY nears 158.60
USD/JPY closed near 158.60, its highest close since September 24, as Japan and the US bond market were shut for holidays.
FXStreet said the Japanese yen weakened on Monday as oil prices climbed and trading conditions were muted by closures in Japan and the US bond market for Columbus Day. Brent rose above $107 a barrel while Japan was shut for Health and Sports Day, and the US government bond market was also closed.
The outlet reported that USD/JPY closed near 158.60, its highest close since September 24, with the yen's daily low near 158.00 occurring within minutes of Brent's move. Tokyo was set to reopen on Tuesday, with Japan's finance minister in Bangkok for IMF meetings and US inflation data due on Wednesday.
FXStreet added that the yen's pressure also reflected a dollar-linked oil purchase structure, since Japan buys nearly all crude oil abroad at prices set in dollars. It noted that with the 10-year Treasury yield held at Friday's 5.24% and Japan's 10-year around 3.0%, the overnight interest-rate gap remained wide because neither bond market was open.
Latest closeWTI crude $91.10 ▲3.2%|Brent $103.93 ▲3.7%|USD/JPY 157.84 ▼0.3%