FX.co ★ Japanese Yen Weakens as Dollar Gains

The Japanese yen fell beyond 144.2 against the US dollar on Monday, continuing its decline for a second consecutive session, as demand for the US dollar increased due to its safe-haven status. This movement occurred as tensions between Israel and Iran escalated over the weekend, with both countries targeting each other’s energy infrastructure, causing oil prices to surge further. This situation makes it less likely that the Federal Reserve will reduce interest rates in the near term, as policymakers consider tariff-related and inflationary pressures. Domestically, attention is on the upcoming Bank of Japan policy decision, where it is generally anticipated that interest rates will remain unchanged. Officials are carefully observing global developments and the impact of rising oil prices on Japan’s inflation outlook.