The Japanese yen rose in Asian trading on Monday against a basket of major and minor currencies, on its way toward achieving its first gain in the last four days against the U.S. dollar, benefiting from the drop in the levels of the American currency after a breakthrough in negotiations between the United States and Iran, despite the naval blockade that the U.S. Navy began implementing on the Strait of Hormuz and Iranian ports.

With the current decline in global oil prices, indications are increasing that inflationary pressures on monetary policy makers at the Bank of Japan are receding, which reduces the likelihood of raising Japanese interest rates later this month.

Price overview

Japanese yen exchange rate today: The dollar fell against the yen by 0.2% to (159.08), from today's opening price of (159.42), and recorded a high of (159.44).

The yen ended Monday's trading down by 0.1% against the dollar, in its third consecutive daily loss, amid market assessment of the collapse of talks in the first round between the United States and Iran in Pakistan.

The U.S. Dollar

The dollar index fell on Tuesday by about 0.1%, deepening its losses for the seventh consecutive session and recording a six-week low, reflecting the continued drop in the levels of the American currency against a basket of global currencies.

This drop comes amid improved risk sentiment in the markets after media reports confirmed the continuation of negotiations between the United States and Iran regarding reaching a lasting peace agreement in the Middle East.

Diplomatic efforts

Diplomatic efforts continue, sponsored by Pakistan and Turkey, to bring viewpoints closer between the United States and Iran and to push toward engaging in a new round of negotiations, following the stumbling of the previous round held in the Pakistani capital, Islamabad, on Friday.

Media reports confirmed that a new round of negotiations between Washington and Tehran may be held in Islamabad next Thursday, with the Swiss capital, Geneva, proposed as a potential alternative for the second round of U.S.-Iranian negotiations.

Global oil prices

Global oil prices fell by an average of 1%, with signs appearing that Washington and Tehran may revive peace talks after the United States began a blockade of the Strait of Hormuz.

Japanese interest rates

The pricing of the probabilities of the Bank of Japan raising interest rates by a quarter of a percentage point in the April meeting is currently stable around 10%.

In order to re-price those probabilities, investors await the release of more data on the levels of inflation, unemployment, and wages in Japan.