JPY weakens to 162.50 against USD amid rising geopolitical risks and higher oil prices, nearing a four-decade low.
The Japanese Yen extended losses against the US Dollar on Friday, trading near 162.50 and approaching the 40-year low of 162.84 set earlier this month. A stronger USD, driven by escalating tensions in Iran and rising oil prices, weighed on the JPY despite softer US inflation data.
Oil prices climbed as Iran and the US exchanged attacks for the sixth straight day, with Iran threatening to disrupt key supply routes. Concerns over a potential global recession resurfaced, while US-China trade tensions added to market unease. Japan’s Finance Minister reiterated threats of intervention but offered no immediate action.
The safe-haven USD regained ground against most peers, offsetting earlier losses from weaker-than-expected inflation figures. Higher oil prices may pressure central banks to tighten monetary policy, further straining the JPY.