During New York trading, USD/JPY moved to recoup its decline during London trading, while persistent uncertainty over Iran supported the dollar's strength.
In today's New York FX market, USD/JPY moved to offset its decline during London trading. The dollar remained firm against other G10 currencies as demand for it as a safe-haven asset came into focus. USD/JPY had temporarily fallen to the mid-¥156 range, but recovered as New York trading got under way.
Iranian Foreign Minister Araghchi was reportedly scheduled to meet with parties mediating talks with the United States, with discussions expected on the latest proposals and the current situation. Differences between the United States and Iran over reopening the Strait of Hormuz and a ceasefire remain wide, and hopes for a breakthrough in the negotiations have receded.
The dollar's strength reflects safe-haven supply and demand alongside risk aversion as uncertainty over negotiations between the United States and Iran persists. In the yen market, expectations for a narrowing of the Japan-US interest rate differential are receding, while attention remains focused on the Bank of Japan's policy direction.
EUR/USD continues to fluctuate in the ¥1.13 range, but downside risks remain. EUR/JPY moved back toward around ¥179 during New York trading, with a reversal of the yen's strength also observed. GBP/JPY found support in the mid-¥207 range and was at times bought back toward the upper ¥208 range along with USD/JPY.