Dollar Surges as Iran Tensions Fuel Inflation Worries
The US dollar surged on Tuesday as renewed tensions between the US and Iran fueled inflation worries and sparked a global bond selloff. The yen, meanwhile, weakened past 160 per dollar for the third straight session.
U.S.-Iran hostilities have pushed Brent crude futures above $92 a barrel, fueling inflation concerns and prompting a bond sell-off. The 10-year Japanese government bond yield touched 3% for the first time in 30 years, while the yield on 10-year Treasury notes hit its highest since January 2025.
U.S. Treasury Secretary Scott Bessent stated that he believed Japan's government and central bank would take action to strengthen the yen. However, this verbal pressure did not halt the yen's decline, with it trading at 160.150 per dollar.