Yen sinks near 40-year low as dollar gains momentum

The dollar strengthened in Asian trade on Friday, pushing the yen close to a four-decade low as uncertainty over a U.S.-Iran peace deal weighed on sentiment and traders speculated that further intervention may be needed to halt the Japanese currency’s slide, News.Az reports, citing Reuters.

The Japanese currency reversed earlier gains to trade flat against the U.S. dollar at 161.455 yen, edging closer to its weakest level in two years. Thin liquidity conditions were also noted, as public holidays in China, Hong Kong and Taiwan, along with an upcoming U.S. holiday, limited market activity.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.3% to a one-year high of 101.07 after U.S. Vice President JD Vance pulled out of a planned trip to meet Iranian negotiators in Switzerland on Friday. The talks had been expected to focus on implementing a 14-point agreement between Tehran and Washington aimed at ending their conflict.

The British pound fell 0.2% to $1.3174, tracking broader currency weakness and remaining largely unchanged after Greater Manchester Mayor Andy Burnham won a by-election in Makerfield. The result is seen as potentially setting up a future challenge to UK Prime Minister Keir Starmer for leadership of the ruling Labour Party.

News.Az 

By Nijat Babayev