The Japanese yen rose in Asian trade on Thursday against a basket of major and minor currencies, heading for its first gain in five days against the US dollar as it attempted to recover from 40-year lows, while Japanese authorities remained on alert to support the currency against excessive moves.

The US dollar weakened after some reports suggested that the latest exchange of military strikes between the United States and Iran would not lead to a renewed war, and that negotiations would resume very soon to complete the roadmap under the 60-day ceasefire agreement.

The Price

The Japanese yen exchange rate today: The dollar fell against the yen by around 0.15% to 162.36 yen, from today's opening level of 162.58 yen, after hitting a high of 162.61 yen.

The yen ended Wednesday's trading down 0.3% against the dollar, posting its fourth consecutive daily loss and hitting a one-week low of 162.71 yen, near its weakest level in 40 years at 162.84 yen.

Japanese authorities

The yen has returned to focus once again, especially after approaching its lowest levels against the US dollar since 1986, raising the possibility of intervention by Japanese authorities to protect the local currency from excessive weakness.

US dollar

The dollar index fell 0.1% on Thursday, extending losses for the second consecutive session and reflecting weaker levels for the US currency against a basket of global currencies.

The decline came amid slower safe-haven buying of the US currency, especially after some reports suggested that the current US-Iran military violations would not lead to a renewed war in the Middle East.

Global oil prices

Oil prices fell by around 0.5% on Thursday, retreating from their highest levels in two weeks, as prices corrected lower and investors took profits, while reports also pointed to continued shipping activity through the Strait of Hormuz.

Japanese interest rates

The probability of the Bank of Japan raising interest rates by 25 basis points at its July meeting is currently steady below 25%.

To reprice those odds, investors are awaiting more data on inflation, unemployment, and wages in Japan.