Yen Surges as US Debt Crisis Fears Intensify Ahead of Iran Sanctions Announcement
The Japanese yen has risen against a basket of major and secondary currencies in Asian trading on Monday, marking its second consecutive day in positive territory against the US dollar.
This gain is attributed to weakness in the American currency amid concerns surrounding the US debt crisis. US Treasury Secretary Scott Bessent is expected to announce details later today of a new package of economic sanctions against Iran, described as potentially the toughest in history.
The measures are expected to target key pillars of Iran's economy and its trading partners, with markets particularly focused on whether they will include China. The yen has been supported by recent data from Tokyo showing growing inflationary pressures facing Bank of Japan policymakers, strengthening expectations for a Japanese interest-rate hike in September.