The CAD/JPY currency pair held in proximity to a 3-week high of 115.682 on Wednesday, as traders weighed the prospect that the United States and Iran could soon secure a permanent ceasefire.
US President Donald Trump indicated growing confidence that the conflict with Iran may be approaching its end. In an interview with Fox News, when asked about how long the war with Iran would continue, he stated, “I view it as very close to over,” maintaining a constructive tone on the outlook.
US Vice President JD Vance reiterated a cautiously constructive message at a public event, stating that Washington is working toward a broader grand bargain aimed at reshaping Iran’s economic integration with the global system.
Despite expectations for a possible new round of peace talks between the United States and Iran, investors remain focused on the economic risks arising from instability in the Strait of Hormuz.
Japan’s heavy reliance on oil imports from the Middle East leaves it particularly exposed to disruptions and the US blockade of Iran’s ports is seen as a threat to already constrained flows through this key shipping route.
These concerns continue to fuel fears that Japan’s economy could face significant pressure in the period ahead.
The CAD/JPY currency pair was last up 0.25% on the day to trade at 115.610.
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