The Japanese Yen weakens to its lowest level since 1986 as geopolitical tensions boost the US Dollar’s appeal.
The USD/JPY pair climbed to 163.19, approaching a 40-year high of 163.24, driven by heightened demand for the US Dollar amid escalating Middle East tensions. The Greenback strengthened as investors sought safety following exchanges between the US and Iran and disruptions in Red Sea oil shipments.
The US Dollar Index (DXY) rose 0.19% to 101.18, marking a five-day high. Analysts note that Japanese officials have not intervened despite the Yen’s decline past 160.00, a level previously seen as a potential trigger for action. Market focus now shifts to Japan’s June trade balance data and upcoming US economic releases.
Traders remain cautious as speculation about a US-Iran deal persists, though skepticism lingers over a near-term resolution. The Yen’s slide reflects broader risk aversion, with the USD gaining against most G8 currencies.