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Iran Nuclear Accord sees USD/JPY around 101.50

The yen slid to the weakest level in almost six months versus the dollar as demand for the safety of the currency waned after an accord was struck to set limits on Iran’s nuclear program.

Japan’s currency depreciated to a four-year low against the euro before a report this week economists said will show inflation accelerated in October. The shared European currency declined versus the dollar after a policy maker said the European Central Bank is technically prepared to make its deposit rate negative. The greenback advanced against the majority of 16 major peers. Thailand’s baht dropped to an 11-week low amid anti-government protests.

“The risk-on environment, along with the nuclear pact signed by Iran, has certainly taken the pressure off haven currencies like the yen,” Ravi Bharadwaj, a Boston-based senior market analyst at Western Union Business Solutions, a unit of Western Union Co., said in a phone interview. “The ECB in recent days have talked up the possibility of cutting rates to boost growth in the union.”

Bloomberg [1]

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