Japanese Yen falls as US Dollar rises after US–Iran talks collapse

USD/JPY extends its winning streak for the third successive day, trading around 159.80 during the Asian hours on Monday. The pair strengthens as the US Dollar (USD) gains on safe-haven demand after Vice President JD Vance confirmed United States (US)–Iran talks ended without a deal following 21 hours of negotiations in Islamabad.

US President Donald Trump said the US would begin “blockading” all ships entering or leaving the Strait of Hormuz. The US Central Command (CENTCOM) said forces will begin blockading all maritime traffic entering and exiting Iranian ports at 10 AM ET (14:00 GMT) on Monday.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf said despite “constructive initiatives,” the US failed to gain the Iranian delegation’s trust, leaving the decision with Washington. Iran’s Revolutionary Guard (IRGC) warned that any military vessels approaching the Strait of Hormuz would violate the ceasefire and face a decisive response.

Traders await the Bank of Japan’s April 27–28 meeting, where policymakers will assess whether rising global energy and commodity prices warrant a rate hike. The Sakura Report showed board members balancing upside inflation risks against downside growth risks following the April 6 branch managers’ meeting. All nine regions maintained that their economies were either “recovering moderately,” “picking up,” or “picking up moderately.”