Yen Holds Intervention Gains Amid US-Iran Uncertainty

The yen has managed to hold onto some of its intervention gains, but remains volatile in currency markets as concerns about a potential US-Iran deal and upcoming US labor data keep traders cautious.

The dollar is near a six-week low, with the yen hovering around 157.71 against it after weakening for two sessions. This comes despite intervention efforts from Tokyo and coordination with Washington in recent days, which have helped push the yen up nearly 5% against the dollar.

Market analysts are split on whether the Bank of Japan should raise interest rates to achieve a lasting impact on the yen's weakness. A recent survey found that around 95% of respondents believe future intervention alone would not be enough to curb the yen's decline for a sustained period, and nearly all of those who held this view also suggested rate increases.

The dollar index remains near a six-week low at 99.65, while Brent crude prices have fallen 0.5% to around $79.08 a barrel amid ongoing tensions in the Persian Gulf.