Diplomatic progress between the US and Iran reduces geopolitical risk, dampening demand for the US Dollar against the Japanese Yen.
The USD/JPY pair remains nearly unchanged at 156.40, reflecting subdued trading activity. Reports suggest the US and Iran are nearing an agreement to de-escalate tensions after more than two months of conflict.
Earlier sessions saw the pair fluctuate within a narrow range, as investors awaited clarity on geopolitical developments. The lack of volatility contrasts with previous weeks, when Middle East tensions drove safe-haven flows into the USD.
Markets are monitoring the situation closely, with reduced uncertainty potentially limiting further upside for the US Dollar.