Dollar Falters as Yen Edges Higher Amid Ongoing US-Iran Tensions

The US dollar has eased slightly from its one-week high after four consecutive days of gains. The dollar index, which measures the greenback against a basket of currencies, shed 0.03% to 101.14.

This decline comes as investors weigh the likelihood of intervention from Tokyo and faster rate hikes by the Bank of Japan.

Oil prices have touched their highest level in about six weeks, with US crude up 2.93% to $86.81 a barrel and Brent at $94.05 per barrel, up 3.34%, due to concerns over supply disruptions.

The Japanese yen has seen a modest recovery from its weakest level in nearly four decades as investors adjust to a changing policy backdrop under Japanese Prime Minister Sanae Takaichi.