Yen Falls to Two-Week Low Amid US Dollar Strength and Strait of Hormuz Uncertainty

The Japanese yen has fallen to a two-week low against a basket of major and minor currencies in the Asian market, driven by investors' preference for the US dollar as a safe haven amid uncertainty surrounding negotiations over the Strait of Hormuz.

The US Dollar Index rose 0.1% on Wednesday, extending its gains for a third consecutive session, while oil prices increased more than 1% due to concerns about energy supplies from the Middle East.

Maintenance of expectations for a Japanese interest-rate hike in September, following calls from Bank of Japan policymakers for a firmer response to rising inflation risks, has further weakened the yen against the US dollar.