26.05.202602:08:37UTC+00Yen Holds Steady Amid US-Iran Uncertainty

The Japanese yen held steady near 159 per dollar on Tuesday, trading largely sideways this week as fresh US military action in southern Iran and ongoing peace talks kept investors on edge. Reports indicated that US forces struck missile launch sites and vessels suspected of attempting to deploy mines in southern Iran, with US Central Command stating the operations were intended to protect American personnel in the region. At the same time, President Donald Trump said negotiations with Tehran were progressing well, but cautioned that further strikes could follow if talks were to collapse.

Domestically, data released last week showed Japan’s core inflation slowed to a four-year low in April, easing immediate pressure on the Bank of Japan to tighten monetary policy. Even so, the central bank may still weigh additional rate hikes, as the Japanese economy has remained comparatively resilient.