The Japanese yen declined in Asian markets on Wednesday against a basket of major and minor currencies, resuming its losses that had paused temporarily the previous day against the US dollar, as the US currency held above its low levels, awaiting new developments regarding talks between the United States and Iran, where intensive diplomatic efforts continue to push for a new round of peace negotiations, following the failure of the previous round hosted by Pakistan.
Amid the current decline in global oil prices, there are increasing signs of easing inflationary pressures on monetary policymakers at the Bank of Japan, reducing the likelihood of a Japanese interest rate hike later this month.
Price overview
Today's Japanese Yen exchange rate: The dollar rose against the yen by 0.2% to (159.06 ¥), from today's opening price of (158.77 ¥), and recorded a low level at (158.72 ¥).
The yen ended Tuesday's trading session up 0.4% against the dollar, its first gain in four days, following a breakthrough in US-Iranian talks.
US dollar
The dollar index rose by about 0.2% on Wednesday, holding above a six-week low of 97.97 points, on track for its first gain in eight days, reflecting a recovery in the US currency against a basket of global currencies.
Apart from buying at cheap levels, the US dollar is rebounding as investors shy away from risk, awaiting more positive signs from talks between the United States and Iran.
diplomatic efforts
Diplomatic efforts, sponsored by Pakistan, Turkey and some other countries, are continuing to bring the views of the United States and Iran closer together, and to push for engagement in a new round of negotiations, following the failure of the previous round held in the Pakistani capital, Islamabad, on Friday.
Media reports confirmed that a new round of negotiations between Washington and Tehran may be held in Islamabad in the coming days, with the Swiss capital, Geneva, being suggested as a possible alternative for the second round of US-Iranian negotiations.
global oil prices
Global oil prices fell by about 1% on Wednesday, extending losses for a second day in a row, as signs emerged that Washington and Tehran were continuing to revive peace talks, despite the United States beginning a blockade of the Strait of Hormuz.
Japanese interest rate
The pricing in the probability of the Bank of Japan raising interest rates by a quarter of a percentage point at its April meeting is currently stable at around 10%.
In order to reprice those probabilities, investors are awaiting further data on inflation, unemployment and wage levels in Japan.
