Investor optimism on US-Iran diplomacy weakens the US Dollar, pushing USD/JPY lower ahead of Fed and BoJ policy decisions this week.
The Japanese Yen strengthened against the US Dollar, with USD/JPY falling 0.17% to near 163.57 as improving risk sentiment weighed on the Greenback. The US Dollar Index (DXY) declined 0.25% to around 101.20, reflecting broader weakness against major currencies.
S&P500 futures rose nearly 1% to near 7,485, signaling a risk-on market mood. The shift follows reports of a pause in US-Iran hostilities, with both sides confirming a halt in attacks, though Iran maintained its retaliatory stance.
Markets now focus on monetary policy announcements from the Federal Reserve and Bank of Japan later this week. Both central banks are expected to hold interest rates steady, with the Fed unlikely to provide new guidance on future moves.