Yen Rises as Dollar Weakens on Israel-Iran Ceasefire

The Japanese yen appreciated to around 145.5 per dollar on Tuesday, rebounding from multi-week lows as the dollar weakened following US President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran, which he called “The 12-Day War.” Markets also brushed off Iran’s retaliatory strike on a US base in Qatar, which caused no casualties, while Tehran’s decision to avoid targeting the critical Strait of Hormuz helped ease fears of broader supply disruptions. Domestically, investors continued to evaluate the Bank of Japan’s policy stance. The central bank recently held its benchmark rate steady at 0.5% at its June meeting but signaled openness to further rate hikes, citing persistent core inflation driven by firms passing wage gains onto prices.