2026.07.0902:27:28UTC+00Yen Pressured by US-Iran Tensions

The Japanese yen traded around 162.5 per dollar on Thursday, hovering near four-decade lows, as renewed tensions between the US and Iran pushed oil prices higher. The resulting increase in energy costs added pressure to Japan’s oil-dependent economy and further weighed on the currency. The US military confirmed it had conducted strikes on Iran for a second consecutive day, while Tehran threatened large-scale retaliatory attacks on US military bases across the region.

At the same time, traders continued to hold bearish positions on the yen, with no visible intervention from Japanese authorities despite repeated warnings from Tokyo. Investors are now awaiting official intervention data due later this month to determine whether the government was behind the yen’s sharp but brief surge on July 2.

Separately, Japan’s government revised the latest draft of its annual policy agenda, calling for an appropriate monetary policy stance that supports stable price growth.