Yen Tumbles to Two-Week Low Amid Strait of Hormuz Uncertainty

The Japanese yen continued to slide against major and minor currencies on Wednesday, hitting a two-week low as investors remained uncertain about negotiations over the Strait of Hormuz.

Despite temporarily halting losses against the US dollar on Tuesday, the yen resumed its decline, with the dollar rising 0.15% against it to ¥159.46, its highest level since July 31.

The yen's weakness comes as investors favor the US currency as a safe haven amid ongoing uncertainty over the Strait of Hormuz and ahead of key US inflation data due later in the day.

Bank of Japan policymakers' growing calls for a firmer response to rising inflation risks have also strengthened expectations for a Japanese interest-rate hike in September, further pressuring the yen.