FX.co ★ Yen Rises as Dollar Weakens on Israel-Iran Ceasefire

On Tuesday, the Japanese yen strengthened to approximately 145.5 against the dollar, recovering from recent lows as the dollar weakened. This shift came in the wake of US President Donald Trump's announcement of a ceasefire agreement between Israel and Iran, dubbed "The 12-Day War." The markets largely ignored Iran's retaliatory strike on a US base in Qatar, which resulted in no casualties, and Tehran's decision not to target the pivotal Strait of Hormuz helped alleviate concerns about broader supply disruptions. Meanwhile, domestically, investors are closely analyzing the Bank of Japan's current policy position. The central bank recently maintained its benchmark interest rate at 0.5% during its June meeting but indicated a willingness to consider further rate increases due to sustained core inflation, partly fueled by companies transferring wage increases to prices.