- The Japanese Yen (JPY) has strengthened below 160
- The yen had risen in recent sessions as oil prices eased
- The US Dollar (USD) is falling against major peers
- Trump is due to speak at 9pm ET
The US dollar Japanese yen (USD/JPY) exchange rate is rising after three days of losses. The pair fell -0.71% in the previous session, settling on Tuesday at 158.59. On Wednesday at 19:30 UTC, USD/JPY trades +0.12% at 158.78 and traded in a range of 158.28 to 159.01.
The Japanese yen is slipping slightly after moving away from the key ¥160 level, which had raised concerns about potential intervention by Japanese authorities.
The yen had come under significant pressure over the past month due to Japan’s heavy reliance on imported energy and the sharp rise in oil prices — which surged around 70% in March.
However, today’s pullback in oil prices, driven by optimism around a potential ceasefire in the Iran conflict, is offering some relief to the currency.
The U.S. dollar is rising versus the yen but falling versus its major peers. The U.S. Dollar Index, which measures the currency against a basket of major peers, is falling 0.35% to 99.64, extending losses for a second day.
The US dollar is falling for a second consecutive day on Wednesday amid growing signs of a possible de-escalation in the Middle East conflict.
President Trump said in an interview that the US could end its war with Iran in the coming weeks, although he is scheduled to address the nation at 9:00 PM ET later today.
The dollar had previously benefited from strong safe-haven demand since the conflict began, posting its strongest monthly performance since July last year in March. However, as geopolitical risks show tentative signs of easing, some of that support is beginning to unwind.
On the data front, ADP payrolls rose to 62,000 in March, down from 66,000 in February, but still above expectations of 40,000 — suggesting the labour market is softening, but not deteriorating sharply.
Separately, US retail sales were stronger than expected, rising 0.6% month-on-month in February after a 0.1% decline in January. This marked the largest increase in seven months, supported by stronger vehicle purchases and seasonal factors such as warmer weather.
Taken together, the data points to a gradual cooling in the labour market alongside still-resilient consumer demand, complicating the outlook for the Federal Reserve.