The Japanese yen weakened beyond 158 per dollar on Wednesday, remaining under pressure as heightened uncertainty surrounding the Middle East conflict continued to bolster the US currency. The Trump administration sent mixed signals on the Iran war: President Donald Trump suggested the conflict could end soon, while senior officials indicated that military operations were intensifying and that diplomatic efforts remained unlikely. Iran’s Revolutionary Guards rejected Trump’s remarks, warning that the blockade would persist until US and Israeli attacks cease.
At the same time, oil prices fell further following reports that the International Energy Agency had proposed the largest release of oil reserves in its history to help stabilize markets. Japan, which is highly exposed to oil shocks due to its heavy reliance on energy imports, has signaled it is prepared to tap its emergency reserves to mitigate supply risks. Separately, data showed that Japan’s producer prices rose 2% in February, the slowest annual increase in nearly two years.
