The Japanese yen weakened in Asian trading on Friday against a basket of major and minor currencies, resuming losses that were briefly halted on Thursday against the US dollar. The currency moved closer once again to a six-week low and slipped back below the 160 threshold, a key level closely monitored by Japanese authorities as a potential trigger for intervention to support the local currency and curb excessive movements in the foreign exchange market.

The US dollar recovered part of its losses from the previous session as caution returned to financial markets after Iran confirmed that no final decision has yet been made regarding the agreement that US President Donald Trump hopes to sign in the near future.

The Price

Japanese yen exchange rate today: The dollar rose about 0.3% against the yen to 160.30, up from an opening level of 159.87, after touching an intraday low of 159.86.

The yen ended Thursday up 0.4% against the dollar, its first gain in three sessions, after earlier falling to a six-week low of 160.60.

In addition to bargain buying at lower levels, the yen benefited after President Donald Trump announced a suspension of planned airstrikes against Iranian targets.

The 160 threshold

Japanese authorities continue to closely monitor currency market movements, particularly after the yen weakened beyond the key 160-per-dollar level, which is widely viewed as a threshold that could prompt renewed market intervention.

Sources told Reuters that Tokyo intervened several times in late April and early May to halt the yen's decline. At that time, the exchange rate reached 160.72 per dollar, its weakest level since July 2024.

Japanese officials have warned against excessive currency volatility and indicated that authorities could take decisive action against disorderly moves in the foreign exchange market.

Finance Minister Satsuki Katayama said the government is "prepared to take appropriate action" if currency markets experience excessive or speculative movements.

Japanese interest rates

Market pricing for a quarter-point interest rate increase by the Bank of Japan at its June meeting remains above 95%.

The Bank of Japan will meet on June 15-16 to assess the appropriate monetary policy tools for the world's fourth-largest economy.

US dollar

The US Dollar Index rose about 0.2% on Friday, recovering part of the heavy losses recorded in the previous session and reflecting renewed strength in the US currency against a basket of global peers.

The rebound comes as caution and risk aversion return to markets, particularly after Iran confirmed that final approval has not yet been granted for the peace agreement announced by President Donald Trump and that the terms remain under review by the country's senior leadership.

Developments in the Iran conflict

President Donald Trump unexpectedly announced a halt to planned military airstrikes against targets inside Iran, saying a preliminary agreement had been approved by senior leaders in Tehran.

Trump stated that the final points of the peace agreement had been approved in principle by all parties involved.

Countries participating in the framework reportedly include the United States, Israel, Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, and Egypt.

Reports indicated that discussions regarding Iran had been elevated to the highest levels of Iranian leadership and had received preliminary approval.

The naval blockade will remain in place until the agreement is finalized, with the time and location of the signing ceremony to be announced later.

Iran said no final decision has been made regarding the agreement that Trump hopes to sign soon, as the relevant authorities continue reviewing its details.

Trump maintained that the war with Iran has ended and said the agreement could be signed in Europe over the weekend in the presence of the Vice President.