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Dollar weakens to 158.60 yen on hopes for end to U.S.-Iran conflict

Thu May 21, 2026 7:55 am JST Currency

The dollar traded at around 158.92 yen in the New York foreign exchange market on the 20th, ending approximately 15 sen lower against the yen compared to the previous day. The euro stood at around 184.72 yen, approximately 10 sen higher against the yen.

The dollar-yen pair initially rose to 159.17 yen as dollar buying and yen selling took precedence due to growing expectations of U.S. interest rate hikes and concerns over Japan's deteriorating fiscal situation. However, reports that "Pakistani mediators may visit Iran on the 21st and announce the completion of a final draft agreement" sparked hopes for an end to hostilities between the U.S. and Iran, leading to a decline in U.S. crude oil futures and long-term interest rates, which prompted dollar selling. The pair weakened to 158.60 yen after Reuters and other media reported that "U.S. President Trump said negotiations with Iran are in the final stages." Nevertheless, the dollar stemmed its decline after the minutes from the April Federal Open Market Committee (FOMC) meeting, released that day, revealed that many officials were open to the possibility of raising interest rates.

The euro traded at around 1.1624 dollars against the dollar, approximately 0.0020 dollars higher compared to the previous day.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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