The Japanese yen strengthened past 145 per dollar on Thursday, rebounding from the previous session’s losses as the US dollar weakened amid easing Middle East tensions and renewed expectations for Federal Reserve rate cuts. Market sentiment improved as US officials are set to meet with their Iranian counterparts next week in an effort to curb Tehran’s nuclear ambitions, while the ceasefire between Iran and Israel appeared to hold. Meanwhile, Fed Chair Jerome Powell reiterated that without the inflationary pressures from tariffs, the central bank likely would have continued cutting rates. Domestically, the Bank of Japan’s latest Summary of Opinions revealed a cautious policy outlook, with board members emphasizing the need to maintain an accommodative stance. The central bank reiterated that any future rate hikes would depend on whether its forecasts for growth and inflation materialize, citing persistent global trade and geopolitical uncertainties.