Yen Soars as Oil Prices Push Towards $100 Amid Middle East Conflict
The yen has strengthened against the dollar, reaching its strongest level since February. This move comes as oil prices push towards $100 per barrel due to the ongoing conflict in the Middle East.
Houthi strikes on Saudi cities and US actions targeting Iranian oil tankers have driven up Brent crude futures by over 1.48% to $99.37 per barrel, casting a shadow over global markets ahead of this week's US inflation report.
The dollar has responded modestly lower, with some analysts attributing the weakness to the rapid rise of the yen in recent days. The euro and sterling have remained steady at $1.1631 and $1.3546, respectively.
OCBC strategists suggest that higher oil and yields may limit USD downside, but a more decisive move will require confirmation from the upcoming inflation data.