FX.co ★ Yen Steadies as Oil Prices Retreat

The Japanese yen stabilized around 158.7 per dollar on Wednesday after a volatile start to the week, as a pullback in oil prices on hopes for a Middle East ceasefire eased pressure on Japan’s import-dependent economy. The currency’s moves followed reports that the US was stepping up diplomatic efforts to end the conflict with Iran, though investors remained cautious after Tehran denied holding any negotiations with Washington. The yen also found support from lingering expectations of potential currency-market intervention, after Japanese officials reiterated that the government stands ready to take all necessary measures to defend the yen. In addition, reports indicated that Japan’s Finance Ministry had contacted market participants about possible intervention in crude oil futures markets, given their influence on the yen.