16.04.202602:35:09UTC+00Yen Firms on Intervention Watch

The Japanese yen strengthened to around 158.8 per dollar on Thursday, reversing earlier losses after Finance Minister Satsuki Katayama said she had engaged in detailed discussions on foreign exchange policy with US Treasury Secretary Scott Bessent, and reiterated that authorities remain ready to intervene decisively if needed. On the monetary policy front, the IMF noted that the Bank of Japan could look through inflation stemming from the Iran conflict, arguing that its effect on underlying price pressures is likely to be limited and should not derail the central bank’s gradual tightening path. The yen also found support from weaker oil prices and a softer US dollar, as optimism grew over a potential agreement to end the Middle East conflict. Reports indicated that Washington and Tehran are considering extending their two-week ceasefire to allow more time for talks, even as the Strait of Hormuz remains effectively closed under a dual blockade.