Dollar holds firm as U.S.-Iran peace deal hangs in balance; yen nears 40-year low at 161.96

The dollar rose to 161.3 yen, closing in on the 40-year high of 161.96, keeping markets focused on whether Japanese authorities will intervene. The Federal Reserve’s latest dot plot showed nine officials still see a rate hike by year end, adding to pressure on the yen in a low-liquidity holiday window. While the Bank of Japan lifted rates this week to a 31-year high, they remain well below global levels, and the interest-rate gap has supported the dollar.