The Japanese Yen lingers near a one-month low against the USD, pressured by Fed rate hike bets and Middle East tensions.
The USD/JPY pair remains above the 160.00 mark, trading near its highest level since April 30 despite a modest pullback in the US Dollar. A weaker USD Index, driven by eased US-Iran tensions, has failed to lift the Yen significantly.
Speculation over potential Japanese intervention to support the Yen has capped further gains, though traders remain cautious. Japan’s Finance Minister reaffirmed readiness for decisive action, but concerns over economic strain from Middle East conflicts and energy disruptions limit bullish bets on the Yen.
Expectations of a Fed rate hike later this year and uncertainty over the US-Iran deal continue to support the USD. Investors are also awaiting US inflation data due later this week.