The Japanese yen staged a quick rebound beyond the 160 per dollar mark on Monday, erasing its earlier losses. Policymakers intensified their verbal intervention to counter excessive depreciation, signaling growing discomfort over the currency's slide. However, the broader undertone remains fragile. Elevated oil prices, driven by deepening Middle East tensions involving Iran and its allies, continue to amplify import costs for energy-dependent Japan. The Bank of Japan kept its interest rate unchanged at 0.75% in March. At the same time, it maintained a tightening bias and warned that persistent, energy-led inflation could complicate its future policy path. Meanwhile, the dollar index hovered near the 100 mark after a sustained rally. It remained supported by steady safe-haven demand amid prolonged geopolitical uncertainty.
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