Geopolitical risks and inflation concerns lift the US Dollar, pushing the yen to multi-decade lows against the greenback.
The Japanese Yen weakened against the US Dollar, with USD/JPY climbing to 162.40 on Monday as escalating tensions in the Strait of Hormuz and policy uncertainties weighed on sentiment. The yen’s decline reflects broader market concerns over potential energy supply disruptions and persistent inflation pressures.
Prior to the move, the pair had hovered near 162.00, with traders monitoring US monetary policy expectations and global risk sentiment. Higher oil prices, driven by fears of conflict in the Middle East, have bolstered the dollar while raising concerns about sustained inflationary pressures.
Markets remain cautious as geopolitical developments and central bank policy outlooks continue to drive currency volatility.