Yen Surges Higher as Markets Anticipate Rate Hike and Oil Prices Rise on US-Iran Tensions

The Japanese yen has surged higher for the second straight day, with USD/JPY plummeting below the 158.00 mark and now trading at 156.10, a decline of 1.6%.

This move comes as Japan's top currency diplomat Mimura declined to comment on a potential rate check, but markets are interpreting this as a warning sign.

The yen's strength has been driven by the expectation of a rate hike from the Bank of Japan, which is seen as a way to stem the yen's recent decline.

Besides the yen's surge, oil prices have also risen due to ongoing US-Iran tensions, with WTI crude up 2.2% to $93.02 and Brent crude up by 1.5% to above $97.