Yen Soars on Rising Oil Prices, US Dollar Falters

The Japanese yen has strengthened to near its strongest level since February, reaching 153.65 per US dollar, as oil prices push towards $100 per barrel amidst a widening war in the Middle East.

The rise of the yen comes despite modest weakness in the US dollar, which is being attributed to the rapid increase in the yen's value over the past week.

Analysts at OCBC point out that higher oil prices and yields may limit the US dollar's downside, but a more decisive move will depend on confirmation from upcoming inflation data.

The yen's rally has been broad-based, gaining against both the euro and sterling, as well as other popular carry-trade targets such as the Mexican peso and Turkish lira.