Yen Sinks on US-Iran Deal Concerns as Dollar Slides to Near Six-Week Lows
The yen slid to its weakest level in over nine months on Tuesday due to concerns about a proposed US-Iran deal and jitters over upcoming US payroll data. The currency markets remained cautious, with the dollar pinned near six-week lows.
The yen was little changed at 157.71 per dollar after weakening for two straight sessions. It has now given back some of its intervention gains, but remains well off last month's multi-decade low of about 164.
Currency markets were also watching the proposed deal between Iran and Oman to help end the US-Iran conflict, which could give Tehran control over inbound traffic through the Strait of Hormuz. Brent crude futures fell 0.5% to $79.08 a barrel on Thursday, near the levels last seen when the US and Iran signed an interim peace agreement in June.
Ray Attrill, head of FX strategy at National Australia Bank, said 'The market's very much in sort of watch and wait mode.'