Most Asian currencies were sitting on mild gains for the week, as they benefited from improving risk appetite on optimism over an end to the Iran war

Asian currencies moved little on Friday as traders kept to the sidelines in anticipation of more peace talks between Iran and the U.S., while the yen weakened after the Bank of Japan steered clear of signalling a rate hike next week.

Most Asian currencies were sitting on mild gains for the week, as they benefited from improving risk appetite on optimism over an end to the Iran war.

The yen’s USD/JPY pair gained 0.1% on Friday and remained close to its highest levels in nearly two years. The pair was also on the cusp of breaking above 160 yen.

Market unease is building that the BOJ is falling behind the curve. Failure to hike would likely see USDJPY push higher, potentially into the 160s, prompting Ministry of Finance intervention aimed at driving the pair back towards 155, OCBC analysts said in a note, noting that Japanese bond yields had risen sharply over the past month.

The yen weakened steadily through March as markets fretted over the impact of energy market disruptions on the Japanese economy.

Broader Asian currencies moved little on Friday and were also set for a muted weekly performance. The Australian dollar was an exception, with the AUD/USD pair up over 1% this week on growing bets that the Reserve Bank of Australia will hike interest rates even further in the coming months.

The yuan’s USD/CNY pair gained 0.1% on Friday and was flat for the week.

The Singapore dollar’s USD/SGD pair was flat, even as data showed the country’s key non-oil exports surged over 15% in March. Electronics demand in China was a key driver of this jump.

The won’s USD/KRW pair was flat, while the Indian rupee’s USD/INR pair dropped 0.1%, taking some support from a recent decline in oil prices. India is among the most vulnerable countries to oil market disruptions, with the rupee having hit a series of record lows after the Reserve Bank stepped in to stem losses.