FX.co ★ Japanese Yen Gains on Mideast Ceasefire

The Japanese yen strengthened beyond 158.5 per dollar on Wednesday, rebounding sharply from the key 160 level reached earlier this week. The move followed an agreement by the United States, Iran, and Israel on a two-week ceasefire to allow negotiations toward a potential deal to end the war.

President Donald Trump postponed planned strikes on Iranian civilian infrastructure for two weeks, describing the arrangement as a “double-sided ceasefire,” while Iran agreed to reopen the Strait of Hormuz and Israel committed to suspending hostilities for the duration of the pause.

At the same time, Prime Minister Sanae Takaichi is pursuing separate talks with US and Iranian leaders as part of broader efforts to secure peace and safeguard Japan’s energy supplies. The yen was further supported by concerns over possible currency intervention, as Japanese officials issued warnings about excessive yen weakness, and by growing expectations of an imminent interest rate hike by the Bank of Japan.