The Japanese Yen rises against the US Dollar amid optimism over a potential US-Iran agreement to reopen the Strait of Hormuz.
The USD/JPY pair fell to 158.85 during Asian trading on Monday, ending a two-day winning streak. The Japanese Yen gained ground as the US Dollar weakened following reports of progress in US-Iran negotiations to reopen the Strait of Hormuz, a critical oil transit route.
Prior to this move, the pair had climbed for two consecutive sessions, reflecting broader USD strength. Market sentiment shifted as geopolitical developments reduced safe-haven demand for the Dollar, benefiting the Yen.
No immediate market reaction data was provided, but the shift highlights sensitivity to geopolitical risks in currency markets.