Geopolitical risks in the Middle East drive demand for the USD, pushing USD/JPY toward a four-week high amid Iran-US tensions.
The Japanese Yen (JPY) weakened slightly against the US Dollar (USD) in late Asian trading, with USD/JPY climbing to near 159.55, close to its four-week high of 159.65. The pair advanced as the USD strengthened broadly due to escalating Middle East tensions following retaliatory strikes between the US and Iran.
The US Dollar Index (DXY) rose 0.3% to around 99.50, reflecting safe-haven demand. Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed attacks on US military bases and threatened further action if provoked. The conflict has supported oil prices, adding to market uncertainty.
Despite the decline, the JPY outperformed most peers, showing relative resilience amid broader USD strength.