Yen Stabilizes as Dollar Hits Near Six-Week Lows on Mideast Hopes

The Japanese yen found some footing after recent intervention efforts by Japan and the US, but the dollar remains near six-week lows due to fresh optimism over a possible diplomatic resolution to the Middle East conflict.

Treasury Secretary Scott Bessent stated that the US will 'do whatever it takes' to support Japan's efforts to stabilize the yen, echoing comments from last week's joint intervention. The BOJ could raise interest rates at its next policy meeting on September 17 and 18, heightening expectations.

The U.S. dollar index was little changed at 99.85 after hitting a six-week low on Monday, while oil prices extended their falls due to easing fears of supply disruptions in the Iran conflict.