Yen Near Intervention Zone as Iran War Risks Weigh on Markets

Yen Hovers Near Intervention Zone

The Japanese yen hovered close to its May low against the U.S. dollar on Wednesday, near levels that spurred Japanese currency intervention in recent weeks, as traders weighed the risks of a renewed flare-up in the Iran war.

Market and Currency Movements

The Australian dollar hovered near its highest since May 15 ahead of consumer price data. The New Zealand dollar stabilized after a 0.6% slide on Tuesday. The safe-haven greenback was steady after U.S. strikes on Iran dented optimism for a near-term end to hostilities.

BOJ and Rate Expectations

Bank of Japan Governor Kazuo Ueda struck a somewhat hawkish posture, saying the war-driven oil shock could become persistent. Markets currently lay around 70% odds for a quarter-point hike at the BOJ's next policy meeting on June 15-16.

The dollar index (DXY) was little changed at 99.087, while the euro traded at $1.1638. The Aussie rose 0.15% to $0.7177, and the New Zealand dollar gained 0.16% to $0.5846.