The Japanese yen traded around 159 per dollar on Wednesday, holding onto gains from earlier in the week as investors awaited this week’s meeting between Prime Minister Sanae Takaichi and US President Donald Trump. Takaichi faces a delicate diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz, then later withdrew the request. She is also under pressure to safeguard Japan’s strategic interests, given the country’s dependence on Middle Eastern oil and its long-standing ties with Iran.
The yen has weakened amid the ongoing Iran war and surging oil prices, developments that have weighed heavily on Japan’s oil-importing economy. However, verbal intervention from Tokyo has helped prevent further depreciation, leaving the currency relatively stable. On the trade front, Japan’s exports rose 4.2% year-on-year in February, beating market expectations of 1.6% but marking a sharp slowdown from the 16.8% jump recorded in January.
