Yen and Dollar Drift Amid Iran Deal Uncertainty

The Japanese yen and US dollar were relatively stable on Thursday, August 6, as markets awaited more details on a proposed U.S.-Iran deal. The yen had given back some of its intervention-led gains, now trading at 157.88 per dollar after touching 155.20 on Monday.

Jonas Goltermann, chief markets economist at Capital Economics, stated that the current round of intervention has a better chance of propping up the yen for longer than previous ones due to 'stretched positioning,' US involvement, and historical undervaluation.

The euro remained steady at $1.1544, while sterling traded down 0.1% at $1.3454. The New Zealand dollar and Australian dollar were 0.2% weaker.

Investors are watching the Gulf region for signs of progress on a deal to reopen the Strait of Hormuz, with Brent crude futures steady at around $79.50 per barrel. Ray Attrill, head of FX strategy at National Australia Bank, noted that the market is in 'watch and wait mode' due to lack of oil market volatility.