- The Japanese Yen (JPY) is rising after gains last week
- Oil prices fall, easing worries over stagflation
- The US Dollar (USD) is falling against major peers
- Trump postponed attacks on Iran’s energy infrastructure
The US dollar Japanese yen (USD/JPY) exchange rate is falling, extending losses from last week. The pair fell -0.31% last week, settling on Friday at 159.23. On Monday at 18:00 UTC, USD/JPY trades -0.53% at 158.39 and traded in a range of 158.21 to 159.66.
The yen is rising, and the US dollar is falling on Monday after US President Trump said he would postpone strikes on Iran’s energy infrastructure following “productive” talks between the two countries.
Trump made the announcement on Truth Social just ahead of a deadline he had set for Tehran to fully reopen the Strait of Hormuz.
Following the announcement, oil prices fell sharply, dropping as much as 14% at one point. At the time of writing, Brent is back below $100 a barrel, down around 10% on the day.
The yen had fallen sharply throughout March, owing to Japan’s heavy reliance on imported energy from the Middle East. Falling oil prices are now helping to ease some of those concerns.
The U.S. dollar is falling across the board. The U.S. Dollar Index, which measures the currency against a basket of major peers, is falling -0.38% to 99.27, extending losses from last week.
Meanwhile, the US dollar is weakening as investors unwind some of the safe-haven flows that had supported the currency earlier in the month.
The dollar had already posted its first weekly decline since the start of the conflict, as rising oil prices and inflationary pressures pushed global central banks towards a more hawkish stance, supporting other currencies relative to the US dollar.
The market no longer expects the Federal Reserve to cut interest rates this year and instead is starting to price in a rate hike. The markets see a 15% chance that the Fed will hike rates next month, in one of the fastest repricings in years.
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