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FX summary: Dollar softens to 158.80 yen range on speculation of progress in U.S.-Iran talks

Mon May 25, 2026 10:16 am JST Currency

The dollar softened against the yen in Tokyo on Monday, trading around 158.90 yen by 10:00 a.m., down more than 20 sen from late Friday afternoon.

In New York on Friday, the dollar had settled up around 20 sen at 159.18 yen after touching an intraday high of 159.23 yen. Those gains were fueled by hawkish remarks from Federal Reserve Governor Christopher Waller, who flagged the possibility of further interest rate hikes.

However, greenback-selling took precedence in Tokyo following signs of easing Middle East tensions. On Saturday, U.S. President Trump stated that a deal to end hostilities with Iran would be "announced soon," while news outlet Axios reported that the two nations are nearing an agreement that includes a 60-day ceasefire extension. This prompted an unwinding of safe-haven dollar bids. Though persistent geopolitical uncertainty limited the downside, the pair dipped to a morning low of 158.82 yen before steadying.

Meanwhile, the euro rose against the dollar to trade near 1.1636 dollars, up nearly 0.0030 dollars from Friday's Tokyo close. Against the yen, the common currency gained roughly 20 sen to change hands around 184.91 yen.

Source: MINKABU PRESS

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

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