Yen Gains as Oil Price Dip Boosts Currency

The Japanese yen has strengthened to around 163.5 per dollar on Monday as the US and Iran suspended strikes against each other, leading to a decline in oil prices.

This development is significant for Japan, which remains heavily dependent on Middle Eastern oil imports, leaving its economy vulnerable to supply disruptions and price fluctuations.

The government's efforts to control inflation have also been met with skepticism, as approval ratings for Prime Minister Sanae Takaichi have slipped. Household expectations continue to outpace the government's ability to rein in prices.