USD/JPY advances toward 161.70 on Monday, gaining around 0.25% at the time of writing, as the US Dollar (USD) benefits from both renewed risk aversion linked to geopolitical tensions in the Middle East and stronger expectations for tighter monetary policy in the United States…
S). The weekend brought mixed developments regarding relations between the United States and Iran
Qatari mediators indicated that discussions between US and Iranian officials had made encouraging progress, with a roadmap aimed at reaching a final agreement within 60 days. However, this optimism quickly faded after US President Donald Trump threatened fresh strikes against Iran if Tehran-backed groups continued their actions in Lebanon. According to several reports, Iranian negotiators subsequently suspended talks in Switzerland in response to those comments.
This geopolitical backdrop is supporting the Greenback as investors seek safe-haven assets while uncertainty surrounding regional stability persists. The US Dollar Index (DXY) trades near 100.90 at the time of press, up 0.14% on the day after already gaining nearly 1% last week. At the same time, the main support for the US Dollar comes from evolving monetary policy expectations.