Yen Defies Gravity as Oil Prices Soar Towards $100

Oil prices have surged to nearly $100 per barrel for Brent crude, a level not seen since late July. This increase is largely driven by fears of escalating conflict in the Middle East.

The higher oil prices are keeping investors cautious and reducing risk appetite across Asian equity markets. However, some stocks that are part of the AI trade continue to perform well.

The yen has defied expectations by continuing its rally despite the increase in oil prices. This is unusual as Japan relies heavily on imported energy from the Middle East.

The yen's surge is largely attributed to bets on a faster pace of Bank of Japan rate hikes and the cleanup of a once-crowded short trade.