The Japanese yen Monday flirted with the crucial 160 per dollar level, as investors took stock of the escalating Iran war, with all eyes on the latest deadline from U.S. President Donald Trump to reopen the Strait of Hormuz.
The currency was flat at 159.55 per U.S. dollar, not far from the 21-month low that it hit last week.
Traders watch for signs of Tokyo intervening in the wake of strong warnings from officials over the past few days.
Japanese Finance Minister Satsuki Katayama on Friday put currency traders on notice, saying the government stands ready to act against speculative moves in foreign exchange markets as volatility has risen “significantly.”
Still, many doubt the firepower of any intervention at a time when geopolitical turmoil in the Middle East is fuelling relentless demand for the safe-haven dollar. The yen is down 1.5% since the war started, stuck near the 160 level.
Speculators have also been adding to their short yen positioning, with the latest weekly data showing a short position worth $5.7 billion, the highest since July 2024, when Japan last intervened in the FX markets.
READ ALSO: Dollar To Naira Exchange Rate Today, April 6, 2026
In an Easter Sunday social media post, Trump threatened to target Iran’s power plants and bridges on Tuesday if the strategic waterway is not reopened, setting a precise deadline of 8 p.m. Tuesday Eastern Time (0000 GMT).
The euro was at $1.1523, while sterling last fetched $1.3211. The dollar index, which measures the U.S. currency against six rivals, was slightly lower at 100.12.
The Australian dollar was 0.3% higher at $0.69045, wobbling near the two-month low that it hit last week.