US Dollar Rises Amid Geopolitical Tensions and Yen Weakness
The US dollar and Japanese yen have seen volatile trading in recent days, with the USD/JPY pair hovering around 159.20.
Japan's fiscal situation continues to deteriorate due to soaring long-term interest rates, a massive debt burden, and expansionary budget pressures.
Coupled with the significant interest rate differential between the US and Japan, carry trade activities continue to weigh on the yen.
The US Treasury Secretary Bessent announced an 'economic exclusion operation' aimed at severing Iran's ties with the global economy, providing safe-haven support for the US dollar.