The Japanese yen rose in the Asian market on Monday against a basket of major and minor currencies, extending its gains for the second consecutive day against the U.S. dollar. The currency is benefiting from a slowdown in the American dollar's levels following an Axios report stating that Iran has submitted a new peace proposal to the United States.

The yen's move into positive territory comes ahead of the Bank of Japan's (BoJ) monetary policy meeting starting later today, where interest rates are widely expected to remain unchanged for the third consecutive meeting.

Price Overview

- Japanese Yen Exchange Rate Today: The dollar fell against the yen by approximately 0.1% to (159.20¥), from today’s opening price of (159.30¥), after reaching a high of (159.60¥).

- The yen ended Friday's trading up 0.2% against the dollar, marking its first gain in five days as it recovered from a nearly two-week low of 159.85 yen.

- Over the past week, the yen lost approximately 0.5% against the dollar, its first weekly loss in a month, driven by escalating tensions between the United States and Iran.

The U.S. Dollar

The dollar index fell by 0.1% on Monday, continuing its decline for the second consecutive session and moving away from nearly two-week highs. This reflects a persistent slowdown in the U.S. currency against global rivals.

The decline in the dollar comes amid improved risk sentiment and cooling demand for the currency as a safe-haven asset, particularly following the Axios report regarding Iran's diplomatic overture. Axios, citing sources, reported that Iran—via Pakistani mediators—submitted a new proposal to the U.S. to reopen the Strait of Hormuz and end the war, while deferring nuclear negotiations to a later stage.

Bank of Japan

The Bank of Japan's third monetary policy meeting of 2026 begins later today, with decisions set to be announced tomorrow, Tuesday. Markets expect the central bank to keep interest rates steady for the third consecutive meeting.

The bank will discuss recent economic developments in the world's fourth-largest economy. Markets are closely watching for any shift in stance regarding interest rates and yield curve control in light of global variables, particularly the repercussions of the Iranian war and high energy prices.

Reuters reported that the BoJ is likely to refrain from hiking rates during this meeting, as the uncertainty surrounding the Middle East conflict continues to cloud the economic and price outlook.

Japanese Interest Rates

- Governor Kazuo Ueda has recently refrained from committing to an April rate hike, citing the war's impact on economic projections.

- Market pricing for a 25-basis-point rate hike at this week's meeting remains stable at 10%, while the probability of a hike at the June meeting is priced at 35%.

Copper prices declined slightly on Friday, amid concerns over the continued closure of the Strait of Hormuz, in light of the absence of any progress in peace talks between the United States and Iran.

And the benchmark three-month copper price on the London Metal Exchange fell by 0.5% to 13,290 dollars per metric ton during official trading.

And despite the extension of the ceasefire between Israel and Lebanon for a period of three weeks, American President Donald Trump said that he is not in a hurry to reach a peace agreement with Iran.

And Ole Hansen, head of commodity strategy at Saxo Bank, said: "Although the risks of military escalation have receded currently, the scale of the disruption is increasing day by day."

And copper on the London exchange had recorded a record level at 14,527.50 dollars per ton on January 29, but it currently faces mixed pressures, between concerns of weak economic activity affecting demand, and potential disruptions in supplies due to a shortage of sulfuric acid.

And Hansen pointed out that the main resistance level lies at 13,525 dollars per ton, which is a level the price has failed to surpass several times since early February, adding that the current state of uncertainty explains the movement of prices in a narrow range during the past two weeks.

And prices were also subjected to additional pressure after the International Copper Study Group announced that the global refined copper market might shift to a surplus in the year 2026.

And in China, the most traded copper contract on the Shanghai Futures Exchange fell by 0.7% to 102,460 yuan (14,988.52 dollars) per ton, to record a weekly loss of about 0.31%.

In contrast, prices received some support from the continued decline in inventories at the Shanghai exchange, which fell by 16.3% during the past week, and have decreased by more than half since early March.

Movements of other metals

Nickel rose on the London exchange by 0.1% to 18,750 dollars per ton, after it touched its highest levels since January 29 at 18,850 dollars, supported by concerns regarding supplies. And the International Nickel Study Group had predicted the market's shift to an annual deficit for the first time since 2021.

And in the rest of the metals, aluminum fell by 0.6% to 3,598 dollars per ton, while zinc rose by 0.6% to 3,473.50 dollars, and lead climbed 0.3% to 1,961 dollars, and tin also increased by 0.4% to 50,400 dollars per ton.

Bitcoin maintained its trading near the 78 thousand dollar level on Friday, heading toward achieving its fourth consecutive weekly gains, supported by the continued flows of institutional investments, while geopolitical tensions and the rise in oil prices limited the upward momentum.

And the largest cryptocurrency in the world rose by 0.9% to reach 78,256 dollars by 09:42 AM Eastern Time (13:42 GMT). And it had surpassed the 79 thousand dollar level briefly on Wednesday, and is heading toward achieving weekly gains of about 6%.

And data from SoSoValue company showed that spot Bitcoin exchange-traded funds listed in the United States continued to attract strong flows, with the recording of about one billion dollars as net flows during the past week, in one of the strongest waves of flows since January.

And the total cumulative net flows rose to more than 58 billion dollars, while the managed assets approached the level of 100 billion dollars, which reflects the volume of increasing institutional participation.

Strait of Hormuz risks pressuring the markets

Market sentiment remained fragile in light of the continued tensions in the Middle East, despite the extension of the ceasefire between Israel and Lebanon for a period of three weeks.

And concerns regarding the Strait of Hormuz—one of the most important arteries of global oil supplies—continued to dominate investor attention, with the escalation of disturbances and military activities, which increased the state of uncertainty.

And oil prices remained high, as Brent crude surpassed the level of 105 dollars per barrel, which strengthened inflationary concerns and negatively affected high-risk assets such as digital currencies.

And despite that, Bitcoin showed a degree of resilience during the recent sessions, after it rose with risky assets earlier in the week supported by optimism regarding the ceasefire.

And the dollar also rose supported by the demand for it as a safe haven, in a sign of the general caution in global financial markets, while global stocks witnessed a mixed performance.

And in a separate context, Morgan Stanley Investment Management launched a money market fund dedicated to stablecoin issuers, under the name "Stablecoin Reserves Portfolio," with the aim of providing an investment tool compatible with holding the reserves of these currencies.

Movements of other digital currencies

The Ethereum currency—the second largest cryptocurrency—stabilized at the level of 2,321.06 dollars, while the XRP currency rose by 1.5% to 1.44 dollars.

Oil prices rose on Friday as fears of renewed military escalation in the Middle East intensified, after Iran published footage showing its special forces storming a cargo ship in the Strait of Hormuz, in light of the absence of any progress regarding the reopening of this vital passage.

And navigation traffic through the Strait, which used to transport about one-fifth of global oil production before the war, remains nearly at a standstill, while Iran's seizure of two cargo ships highlighted the difficulty of Washington's control over traffic in the region.

And Brent crude contracts rose by 2.18 dollars, or 2.1%, to reach 107.25 dollars per barrel by 10:19 GMT, while American West Texas Intermediate crude contracts climbed 1.78 dollars, or 1.9%, to 97.63 dollars.

And on a weekly basis, Brent crude rose by about 18%, and West Texas crude by about 16%, recording the second-largest gains since the outbreak of the war.

And the two crudes had closed at an increase exceeding 3% on Thursday, following reports of air defenses intercepting targets over Tehran, along with news of internal conflict between the hardline and moderate currents within Iran.

And Tamas Varga from the oil brokerage firm PVM said: "There are no signs of de-escalation."

For his part, American President Donald Trump said that Iran might have strengthened its military capabilities "a little" during a two-week truce, but he added that the American military is capable of eliminating them "in one day." And he had announced on Wednesday the extension of the ceasefire indefinitely to allow more time for peace talks.

And the firm "Haitong Futures" viewed in a report that the ceasefire appears increasingly like a preliminary stage for more fighting, pointing out that in the event of the failure of talks by the end of April and the resumption of fighting, oil prices might rise to new record levels this year.

And Susannah Streeter, chief investment strategist at "Wealth Club," said: "It is expected that we will witness new financial pressures, with the continued disruption of major shipments from the region," adding that this will keep the costs of many goods high.

And in light of the search by investors and governments around the world for a permanent solution, Trump emphasized that he will not set a "timeframe" for ending the conflict, saying that he seeks a "grand bargain."

And he added: "Don't rush me," in response to a question regarding the duration he is prepared to wait to reach a long-term agreement.