The Japanese yen hovers near 34-year lows against the dollar amid rising oil prices and a robust USD.
The USD/JPY pair opened at 162.36 on Monday, extending a decline that has pushed the yen to its weakest level since 1996. The currency faces pressure from a strengthening US dollar and surging oil prices, driven by escalating geopolitical tensions in the Middle East.
The yen has struggled to find support as Japan’s trade balance remains under strain from higher energy import costs. Analysts note that the Bank of Japan’s ultra-loose monetary policy contrasts sharply with the Federal Reserve’s stance, further weighing on the currency.
Markets are closely watching for potential intervention by Japanese authorities, though no immediate action has been signaled.