Yen Surges Against Dollar as US-Iran Tensions Ease

The yen rose against the dollar in Tokyo foreign exchange trading on Monday, ending its six-session losing streak. The currency briefly touched 163.33 per dollar before easing back to 163.51-52 as US-Iran tensions eased and market expectations of a contained conflict spread.

A sharp decline in crude oil futures also alleviated concerns over Japan's widening trade deficit, supporting the yen. However, speculation that dollar procurement by domestic real-demand players capped further gains for the Japanese currency.

Market participants noted that uncertainty over the Middle East outlook has not been completely dispelled, and caution persists over the possibility of a surprise rate increase under Fed Chair Warsh.