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FX Summary: Dollar Weakens to the \158.50 Level on Two-Week Pause in US Strikes Against Iran

Wed Apr 8, 2026 10:14 am JST Currency

As of 10:00 a.m. on the 8th in Tokyo trading, the USD/JPY pair stood at around \158.69, dropping nearly \1.20 from the previous day's 5:00 p.m. level amid broader dollar weakness and yen strength.

During the New York session on the 7th, the pair closed at roughly \159.62, down about 6 sen (\0.06) from the prior day. Although geopolitical tensions initially drove the pair up to \160.03 on safe-haven dollar buying, it later softened to the \159.50 level as U.S. crude oil futures lost momentum.

Trading in Tokyo was dominated by dollar selling and yen buying. Early on the 8th (JST), U.S. President Trump announced on social media his agreement to a two-week suspension of strikes against Iran, provided that Iran fully and immediately ensures the safe passage of the Strait of Hormuz. This news prompted a drop in U.S. crude oil futures in off-hours trading. As investors unwound the long-dollar, short-yen positions built up during the recent flight to quality, the USD/JPY pair slid to \158.55 around 9:00 a.m.

Elsewhere, the euro traded at around $1.1672 against the dollar as of 5:00 p.m. the previous day, up approximately $0.0130. Against the yen, the EUR/JPY pair stood at around \185.22, advancing more than 70 sen (\0.70).

Source: MINKABU PRESS

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