Japanese Yen surges against US Dollar as Trump confirms two-week ceasefire
The Japanese Yen (JPY) trades significantly higher against the US Dollar (USD) on Wednesday, with the USD/JPY pair sliding 0.75% to near 158.40 during the Asian trading session. The pair faces intense selling pressure as demand for safe-haven assets has diminished, following the announcement of a two-week ceasefire between the United States (US) and Iran.
During the press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, is down 0.54% to near 99.00. S&P 500 futures rally almost 2.5% to near 6,777, signifying upbeat market sentiment.
Earlier in the day, US President Donald Trump announced a suspension of planned attacks on Iranian civilian infrastructure for two weeks, through a post on Truth.Social, as Tehran agreed to reopen the Strait of Hormuz, a critical gateway to almost 20% of global oil supply. Trump added, “We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”
Meanwhile, Iranian officials have also acknowledged the Hormuz reopening and have stated that negotiations on the 10-point proposal with the US will begin on April 10 in Islamabad. Tehran clarified that the 10-point proposal includes controlled transit through the Hormuz coordinated with Iranian armed forces, ending the war against Iran and allied groups, and withdrawal of US combat forces from all regional bases.
The temporary ceasefire announcement between the US and Iran has resulted in a sharp decline in the WTI Oil price, which is down over 10% around $90.00. Lower oil prices bode well for currencies from economies like Japan, which rely heavily on oil imports to meet their energy needs.
Going forward, investors will focus on the US Federal Open Market Committee (FOMC) minutes of the March policy meeting, which will be published later in the day.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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