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2026.03.0402:20:45UTC+00Yen Pressured by Dollar Strength

The Japanese yen hovered near its recent lows around 157.6 per dollar on Wednesday, pressured by a stronger greenback as fears that a prolonged conflict in the Middle East could keep energy prices elevated fueled inflation concerns. Markets dialed back expectations for Federal Reserve interest rate cuts, shifting bets on the next reduction from July to September. The dollar also strengthened as the dominant safe-haven currency as the US-Israeli war on Iran entered its fifth day. US President Donald Trump expressed concern that the strikes could usher in a new Iranian leadership potentially as troubling as the previous regime, highlighting the conflict’s uncertain trajectory. Meanwhile, Japanese Finance Minister Satsuki Katayama reiterated that currency market intervention remains an option to support the yen, stressing that authorities are monitoring its decline “with a strong sense of urgency” and are in close coordination with the United States.

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