Yen Storms Higher Amid Escalating Middle East Tensions
The Japanese yen has reached seven-month highs as investors scramble for safe-havens amid escalating tensions in the Middle East. The dollar index, which tracks the US currency against six others, neared its lowest point in almost two weeks.
Brent crude futures rose nearly 3% to top $100 per barrel for the first time since late July, exacerbating market jitters ahead of US inflation data on Friday that will set the stage for central bank meetings next week in the US and Japan.
Traders widely expect the Bank of Japan to raise rates by 25 basis points at its September 17 and 18 meeting, but the rally will hinge on whether Governor Kazuo Ueda follows through with hawkish comments. Treasury Secretary Scott Bessent has taken a bold stance, daring traders to bet against the yen following historic joint US/Japanese intervention.