Yen Holds Steady as Markets Watch US-Iran Talks

2026-04-10 01:55 By Jam Kaimo Samonte 1 min. read

The Japanese yen steadied around 159 per dollar on Friday, drawing some support as a two-week US-Iran ceasefire triggered a sharp decline in oil prices and eased stagflation concerns.

Investors are now focused on diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in meetings with Iranian officials.

However, sentiment remained cautious amid Israeli strikes on Lebanon and ongoing disruptions in the Strait of Hormuz that risk undermining the fragile truce.

The yen remains down about 2% since the start of the conflict, reflecting concerns that surging energy costs from the Iran war could fuel inflation while weighing on Japan’s growth outlook.

Markets are now watching for signals from Bank of Japan Governor Kazuo Ueda ahead of the April 28 policy decision, following his guidance-style communication approach seen ahead of the last rate hike in December.



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