Dollar Surges to New High Against Yen as Market Challenges Officials

The US dollar has surged to a new high against the yen, reaching JPY158.90 in the European morning, as the market challenges the resolve of Japanese and US officials. The Bank of Japan's last meeting was hawkish sounding, but the swaps market now sees only a slight chance of a rate hike at next month's meeting.

The dollar is narrowly mixed against other currencies, but the yen's 0.65% loss stands out. In related news, Iran has announced that it will not negotiate with the US on the Strait of Hormuz, instead focusing on talks with Oman.