The Japanese yen weakened to around 159.2 per dollar on Thursday, as mixed signals from US President Donald Trump on a possible de-escalation of the Middle East conflict lent support to the greenback. The dollar advanced after Trump said the war in Iran was “very close” to being completed and was likely to achieve its objectives in the coming weeks, while also warning that military operations could intensify. At the same time, he stressed that diplomatic efforts were ongoing, keeping investors wary of geopolitical risks and their potential impact on global markets.
Japan, a major importer of Middle Eastern crude, has been particularly exposed: domestic gasoline prices hit record highs in mid-March before easing slightly on the back of government subsidies. Separately, newly appointed Bank of Japan board member Toichiro Asada signaled a cautious, data-dependent stance at his first press briefing. Asada joins the nine-member board ahead of the April 27–28 policy meeting, where markets currently assign roughly a 71% probability to a rate hike.
