Yen Resumes Losses Amid US-Iran Tensions

The Japanese yen has resumed its losses against major and minor currencies in Asian trading on Monday. This comes after a temporary rebound on Friday, where it ended up 1.0% against the dollar for the first time in six sessions.

Investors are turning to the US currency as the most attractive alternative investment amid escalating tensions between the United States and Iran. The US Dollar Index rose nearly 0.2% on Monday, resuming gains that paused on Friday and moving back toward a two-month high.

The yen's weakness is attributed to concerns over widening interest rate differentials between Japan and the United States. A former Bank of Japan board member said the central bank could now move toward raising interest rates on a quarterly basis.