US Dollar Slips as Markets Weigh Potential US-Iran Peace Deal and Oil Price Outlook 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
European Stocks Rise as AI Optimism Offsets U.S.-Iran Tensions 
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path 
Canada and Germany Advance Major LNG Supply Partnership 
Iran-U.S. Nuclear Talks Remain Unresolved as Strait of Hormuz Risks Keep Markets on Edge 
U.S. Launches New Strikes on Iran as Trump Signals Peace Deal Uncertainty 
Asian Markets Slide as New U.S. Strikes on Iran Spark Investor Caution 
Gold Prices Slip as Stronger Dollar and Iran Peace Talk Uncertainty Weigh on Market 
Oil Prices Fall as Markets Await U.S.-Iran Peace Deal Decision 
US Launches New Trade Investigation Into Vietnam Over Intellectual Property Concerns 
Wall Street Hits New Highs as U.S.-Iran Ceasefire Talks Boost Market Sentiment 
ECB’s Philip Lane Warns Middle East Conflict Could Keep Inflation Elevated 
S&P 500, Nasdaq Hit Record Highs as Iran Ceasefire Talks and AI Rally Boost Markets 
S&P 500 Hits Record High as Tech Rally Slows Amid Iran Peace Uncertainty 
US Imposes Fresh Iran Oil Sanctions Despite Progress on Ceasefire Talks 
Oil Prices Set for Sharp Weekly Losses as U.S.-Iran Ceasefire Hopes Ease Supply Concerns 
The Japanese yen remained a focal point in global foreign exchange markets on Monday, as it trimmed earlier gains against the U.S. dollar following a sharp rally driven by speculation of government intervention. The USD/JPY pair edged slightly higher to around 157.21 after briefly strengthening earlier in the day, highlighting ongoing volatility in the currency markets.
Market sentiment suggests that Japanese authorities may have stepped in last week to stabilize the yen, which has faced persistent weakness due to macroeconomic pressures. Reports indicate that Tokyo could have spent as much as 5.48 trillion yen (approximately $35 billion) in currency intervention, marking its first such move in two years. Analysts believe this action was aimed at preventing the dollar-yen exchange rate from breaching the 160 level, especially during Japan’s Golden Week holiday period when trading volumes are typically lower and price swings more pronounced.
Despite the intervention, experts caution that structural factors continue to weigh on the yen. Higher global oil prices, the U.S. Federal Reserve’s stance on interest rates, and Japan’s relatively low real yields all contribute to sustained downward pressure. Additionally, the yen remains a preferred funding currency for carry trades, further limiting its upside potential.
Meanwhile, the U.S. dollar gained support from increased safe-haven demand amid escalating geopolitical tensions in the Middle East. Renewed conflicts in the Strait of Hormuz, a critical route for global oil shipments, have heightened market uncertainty. Reports of attacks on vessels and disruptions to shipping routes have raised concerns about energy supply, boosting demand for the dollar.
The U.S. dollar index rose by 0.2% to 98.37, reflecting broader strength against major currencies. The euro and British pound both declined by 0.3%, trading at $1.1690 and $1.3530 respectively. Ongoing geopolitical risks and central bank policies are expected to keep forex markets volatile in the near term.
