Yen Soars as Oil Prices Hit $100 Amid Middle East Conflict

The Japanese yen has strengthened to a seven-month high against the US dollar as traders grapple with rising oil prices and geopolitical tensions in the Middle East.

Brent crude futures have pushed above $99.37 per barrel, casting a shadow over global markets ahead of the US inflation report on Friday.

The yen's rally has been driven by expectations of faster Bank of Japan tightening, repatriation of overseas funds by Japanese investors, and pressure from Washington for a stronger yen.

Analysts expect the BOJ to raise rates by 25 basis points at its September 17-18 meeting, but the outcome will depend on Governor Kazuo Ueda's comments and the Federal Reserve's next moves.