Yen Soars as Oil Prices Hit Six-Month High Amid Escalating Middle East Conflict
The Japanese yen has been gaining strength lately, and on Wednesday it reached its strongest level since February. This move pushed the dollar on the defensive as traders struggled to cope with rising oil prices.
Brent crude futures surged by over 1.48% to $99.37 per barrel due to the escalating conflict in the Middle East. The Iranian-backed Houthis launched strikes on several Saudi cities, while US forces hit multiple Iranian oil tankers and Iran targeted a US base in Jordan.
The reaction in the currency market was to push the dollar modestly lower. However, some analysts attributed this weakness to the rapid rise of the yen over the past week.
The euro was steady at $1.1631, while sterling last bought $1.3546. The dollar index, which measures the US currency against six key rivals, was at 98.15, close to its lowest level in almost two weeks.