- USD/JPY edges higher to around 159.20 in Thursday’s Asian session.
- Trump said his core “objectives are nearing completion” in Iran.
- Japan’s Mimura said authorities may take a ‘decisive’ step if speculative moves persist.
The USD/JPY pair gains momentum to near 159.20 during the Asian trading hours on Thursday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) following US President Donald Trump’s speech from the White House.
Trump said on Thursday that the US is “systemically dismantling the regime’s ability to threaten America or project power outside of their borders.” He added that Iran’s ability to launch missiles and drones has been curtailed.
A White House official stated that the US President will focus on the operation having met or exceeded all of its benchmarks, including destroying Iran’s ballistic missiles and production facilities. Uncertainty surrounding the US-Iran ceasefire and persistent tensions in the Middle East continue to boost the Greenback in the near term.
Fears that Japanese authorities would step in to support the domestic currency could help limit the JPY’s losses. Japan’s top currency diplomat, Atsushi Mimura, said on Monday that officials may need to take “decisive” steps if speculative moves persist in the currency market.
“We are hearing that speculative moves are increasing in the currency market, in addition to the crude futures market. If this situation continues, it may be time to take decisive measures,” said Mimura.
