FX.co ★ Yen Strengthens on Safe-Haven Flows

The Japanese yen strengthened to approximately 143 per dollar on Friday, marking its third consecutive session of gains. This uptick is primarily attributed to increased geopolitical risks, which have spurred investor interest in safe-haven assets. The currency's rise comes in response to escalating tensions in the Middle East, triggered by Israel's preemptive strike on Iran, specifically targeting its nuclear facilities. Israeli authorities have committed to continuing their military operation until the perceived threat is mitigated, leading to a wave of risk aversion that has reverberated across global markets. Additionally, trade-related anxieties have been exacerbated by US President Donald Trump's threats to impose unilateral tariffs, aiming to compel other nations into renegotiating trade agreements, thereby further intensifying market uncertainty. Domestically, Bank of Japan Governor Kazuo Ueda informed parliament earlier this week that the central bank stands ready to increase interest rates once more, contingent upon a clear indication that core inflation is consistently progressing towards the 2% benchmark.