Japan hints at potential currency intervention while Middle East tensions lift the USD, pushing the yen lower in early European trading.
The USD/JPY pair climbed to 157.15 in early European trading Monday, extending gains as the yen softened amid heightened geopolitical risks in the Middle East. The US Dollar (USD) strengthened broadly, including against the euro (EUR), as investors sought safe-haven assets.
The yen’s decline follows Japan’s recent signals that it remains prepared to intervene in currency markets to stabilize the yen. The pair had traded near 155.00 last week before rising sharply, reflecting persistent pressure on the Japanese currency.
No immediate market reaction was specified, but the yen’s movement underscores ongoing volatility tied to global risk sentiment and policy expectations.