U.S. Dollar Falls 0.1% as Israel-Lebanon Ceasefire Boosts Risk Appetite; USD/JPY Hits 160

On Thursday (June 4), the U.S. dollar weakened as investors ditched safe-haven demand following Israel and Lebanon's ceasefire agreement, with the Dollar Index (DXY) declining 0.1% to 99.45. The agreement, contingent on Hezbollah's full withdrawal south of the Litani River, revived hopes for broader U.S.-Iran peace negotiations.

Meanwhile, the Japanese yen remained under pressure, with USD/JPY touching 160—a key intervention threshold. Bank of Japan Governor Kazuo Ueda reiterated this week that policymakers would consider further rate hikes if inflation risks outweigh growth concerns. According to Trade Nation analyst David Morrison, official interventions previously maintained USD/JPY below 160 for roughly three months, but this time the breach returned in just over a month.