USD/JPY Steadies Near 162.55 Amid Geopolitical Risk and Hawkish Fed
The USD/JPY currency pair steadied near 162.55 on Monday, up 0.10% from the previous day's close, after an initial dip in the US Dollar gave way to renewed demand due to increased geopolitical risk.
The US Dollar Index (DXY) hovered around 101.00, having rebounded from a low of 100.65, while oil prices also recovered following a shift in headlines from tentative diplomacy to fresh regional tension.
Market sentiment improved initially on signals that US-Iran talks could proceed, but reversed after Reuters reported that Yemen's Iran-aligned Houthis announced an immediate naval blockade against Saudi Arabia.