The Japanese Yen (JPY) retreats further from over a one-week top touched against the rebounding US Dollar (USD) during the Asian session on Friday, pushing the USD/JPY pair to a fresh daily peak, around the 143.75 area in the last hour. Reports that the Bank of Japan (BoJ) will keep the benchmark rate steady at 0.5% at its upcoming meeting next week turn out to be a key factor weighing on the JPY. Investors, however, seem convinced that the BoJ will stick to the path toward policy normalization amid the broadening inflation in Japan. Adding to this, a sharp escalation of geopolitical...
The US Dollar pared losses after a sharp drop on Thursday (6/13). Risk-off reaction to Israel's attack on Iran has brought some cheer to the US Dollar, pushing the pair back above 0.8100, but it is still on track for a weekly decline of 1.3%. News reports of explosions at nuclear and military sites in Iran that would kill several high-ranking Revolutionary Guard figures in an attack that, according to Israeli Prime Minister Benjamin Netanyahu, could last for several days. Iran announced that it would walk away from nuclear talks with the US, which took place on Sunday in Oman, and launched...
The US dollar rose on Friday as investors flocked to the currency and other safe havens including US Treasury bonds and gold after Israel launched a major attack on Iran, prompting Tehran to retaliate. Israel said it targeted multiple military targets in Iran, and Iran launched a barrage of drones in response. "The geopolitical escalation adds another layer of uncertainty to an already fragile sentiment," said Charu Chanana, chief investment strategist at Saxo. "The key question now is whether this marks a brief flare-up or the beginning of a broader regional escalation. If tensions...