The yen weakened slightly on Thursday, shedding 0.15% to trade at 158.81 per dollar after gaining ground the previous day in the wake of a Middle East ceasefire announcement. Market attention now turns to the Bank of Japan’s policy meeting later this month, with overnight indexed swaps indicating a 55% probability of an interest rate hike, according to data from Tokyo Tanshi.
The euro edged lower by 0.01% to $1.1661, while sterling gained a marginal 0.01% to $1.3393. The U.S. dollar has emerged as a key beneficiary of the recent conflict, supported in part by America’s status as a net energy exporter, which insulates it from the economic pressures faced by oil-importing nations such as Japan and many European countries.
Investor sentiment remains cautious as the fragile ceasefire between Israel and Iran shows signs of strain. Israel has continued its military campaign against the Iran-aligned Hezbollah militia in Lebanon, while Tehran has accused both Israel and the United States of violating the agreement, calling further peace talks “unreasonable.” The Strait of Hormuz remains closed to vessels without permits, though shippers have indicated readiness to resume transit, a move that has pushed oil prices higher.
U.S. President Donald Trump has ordered American ships, aircraft, and troops to remain in and around Iran until full compliance with the ceasefire is achieved. The five-week conflict has already disrupted global oil and gas supplies on an unprecedented scale, and the uneasy truce has left Iran with greater leverage over shipping through the vital waterway than before the hostilities began.
The dollar index, which tracks the greenback against a basket of major currencies, held steady at 99.07. Analysts warn that strong U.S. economic data could trigger a rebound in the dollar’s value. In Nigeria, the naira traded at 1,379.50 per dollar on Thursday, marginally weaker than the opening rate of 1,378.98, according to the Nigerian Foreign Exchange Market. Trading volume remained moderate in early hours, with the intraday high reaching 1,380.00.
Elsewhere, the Australian dollar slipped 0.06% to $0.7039, while New Zealand’s kiwi strengthened 0.17% to $0.5832. In cryptocurrency markets, bitcoin fell 0.49% to $71,030.07, and ethereum declined 1.06% to $2,186.50.
