Yen Steadies Amid Intervention, Dollar Near Six-Week Lows on Mideast Hopes

The Japanese yen has steadied after recent intervention efforts, but the dollar remains near six-week lows due to fresh optimism over the Middle East. Treasury Secretary Scott Bessent said the U.S. will do 'whatever it takes' to support Japan's efforts to stabilise the yen.

Markets remain sceptical about the lasting effects of the recent interventions, with some expecting a normalisation in BOJ policy to help turn the tide for the Japanese currency. The yen may settle in a 155-160 range for now, with attention shifting next to the Federal Reserve and BOJ policy meetings later this month.

New Zealand's unemployment rate climbed to a decade-high of 5.6% in the second quarter, causing the NZD to decline by about 0.4%. Oil prices have extended their falls as signs of a possible diplomatic off-ramp to the Iran conflict ease fears of supply disruptions and prompt traders to unwind risk premiums.