Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com - Bank of America maintains its positive outlook on cross-yen currency pairs, with a preference for the Australian dollar against the Japanese yen, citing multiple factors including elevated oil prices and central bank policy divergence.
The firm’s commodities team projects the average Brent crude price in 2026 at $92 per barrel, assuming the conflict involving Iran ends in April, according to a report dated April 1, 2026. Even if tensions surrounding Iran ease, normalization in oil prices could take time.
Bank of America expects the yen to weaken against commodity currencies for several reasons. The impact of higher oil prices on foreign exchange supply-demand dynamics has yet to materialize and still lies ahead. Lower volatility tends to be yen-negative and positive for high-beta currencies.
The firm notes that with reduced dollar appreciation pressure, both the need for and the risk of foreign exchange intervention decline. Uncertainty lingers over the Bank of Japan’s rate-hike outlook amid hawkish shifts by overseas central banks.
A de-escalation in tensions would likely reverse broad dollar strength, Bank of America said.
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