MarthaJane,
Absolutely, fluctuations in blood sugars can cause your vision to change. Most optometrists or ophthamologists who are experienced with diabetic patients will tell you not to bother changing your prescriptions until you get your blood sugars under control.
You mentioned your morning blood sugars. Are you testing at other times of the day? It's possible that your levels are going way up after eating. You might want to try testing 2 hours after meals, and keep a log. If your bg levels are still way above 160 2 hours after a meal despite all the weight you've lost, you may need to add some medication to keep them down.
Also, if you're not seeing an ophthamologist, but only an optometrist, make an appointment with an ophthamologist for a dilated eye exam. Diabetics should have one of these once a year, and it needs to be with a doctor who is experienced at diagnosing diabetic retinopathy, which is usually an opthamologist rather than an optometrist. You probably don't have retinopathy yet, and may never get it, but you should be checked for it anyway.
Ruth