The Japanese yen rose in the Asian market on Wednesday against a basket of major and minor currencies as part of recovery attempts from a one-week low against the U.S. dollar. The yen benefited from a slowdown in the American currency following President Trump's announcement to extend the ceasefire with Iran indefinitely.

The probability of the Bank of Japan (BoJ) raising interest rates during its April meeting remains weak, especially after Governor Kazuo Ueda refrained from pledging to normalize monetary policy in the near term due to the impact of the Iranian war on economic forecasts.

Price Overview

- Japanese Yen Exchange Rate Today: The dollar fell against the yen by 0.1% to (159.17), from todays opening price of (159.32), and recorded a high of (159.42).

- The yen ended Tuesday's trading down by 0.3% against the dollar, its second consecutive daily loss, reaching a one-week low of 159.64 yen after Iran refused to participate in the second round of peace negotiations in Pakistan.

The U.S. Dollar

The dollar index fell on Wednesday by 0.1%, retreating from a high of 98.57 points, reflecting a slowdown in the levels of the American currency against a basket of global currencies.

Beyond correction and profit-taking, the U.S. dollar is declining due to a slowdown in safe-haven buying as markets welcomed Trump's decision to extend the ceasefire with Iran.

Regarding monetary policy, the statements of Federal Reserve nominee Kevin Warsh during a Senate hearing were interpreted as leaning toward a hawkish stance, while strong retail sales data provided an optimistic outlook for the U.S. economy's performance during the first quarter of this year.

Iranian War Updates

- U.S. President Donald Trump announced the extension of the ceasefire with Iran indefinitely.

- Pakistan, the mediator in the peace talks, requested the ceasefire extension.

- Trump: "We will extend the ceasefire until Iran presents its proposal and discussions conclude one way or another."

- Iranian state television announced that Tehran will not commit to the truce extension announced by Trump.

- Advisor to the Speaker of the Iranian Parliament: "Trump's extension of the ceasefire is an attempt to gain time for a surprise strike."

Japanese Interest Rates

- BoJ Governor Kazuo Ueda has recently refrained from pledging to raise interest rates in April, given the war's impact on economic projections.

- The market pricing for the probability of the Bank of Japan raising interest rates by a quarter percentage point in April is currently stable around 10%.

- To re-price these probabilities, investors await further data on inflation, unemployment, and wages in Japan.