Yen Tumbles to 39-Year Low Amid Middle East Tensions

The Japanese yen plummeted to its weakest level in nearly 39 years, hitting an intra-day low of 163.98 against the US dollar on July 23rd.

This sharp decline was largely driven by rising tensions in the Middle East, which led to a surge in crude oil futures and fueled anxiety over energy supplies and inflation fears.

The escalating conflict in Yemen, where Iran-backed Houthi rebels claimed responsibility for a missile attack on two Saudi tankers, triggered a spike in Brent crude futures to $100 per barrel.

As a result, the US Dollar Index rose 0.36% to 101.47, reflecting broad-based dollar strength and underpinning further yen weakness.