Yen Falls Amid Caution Over Iran Situation, Japan-U.S. Summit

The Japanese yen continued its decline in New York foreign exchange trading on the 21st, settling at 157.30-40 per dollar, down 0.45 yen from the previous weekend.

This was largely due to position-adjustment selling of the yen and buying of the dollar as investors assessed developments in the Middle East and looked ahead to the Japan-U.S. summit scheduled for later in the week.

The yen traded in a range of 157.17 to 157.53 per dollar, with dollar buying initially supported by expectations of a Federal Open Market Committee (FOMC) rate hike.

However, as expectations grew for a diplomatic resolution between the U.S. and Iran, crude oil prices fell and U.S. long-term interest rates declined, dampening the momentum of dollar buying.