Japanese Yen Gains on Lower Oil Prices Amid US-Iran Strike Pause
The Japanese Yen (JPY) has strengthened against the US Dollar (USD), trading around 163.60 on Monday, following a pause in US-Iran strikes over the weekend.
This development has eased risk aversion and led to a decline in oil prices, which benefits Japan due to its heavy reliance on Middle Eastern oil imports.
The USD/JPY pair lost ground as the US Dollar fell, while the Japanese Yen received support from lower oil prices.
Japan's economy is sensitive to supply disruptions and crude price swings, making it vulnerable to potential supply chain disruptions due to ongoing tensions in the region.