Yen slips near 157.5 as dollar dominates safe-haven flows

The Japanese yen hovered around 157.5 per dollar on Wednesday, remaining under pressure as the US dollar absorbed the bulk of safe-haven demand amid escalating Middle East tensions and renewed inflation concerns linked to higher energy prices. The dollar index held above 99 following a sharp two-day advance, reflecting a decisive rotation of defensive capital into US assets as the USIsraeli confrontation with Iran entered its fifth day. In contrast, the yen has attracted only limited risk-off inflows, marking a notable departure from its traditional role during periods of heightened geopolitical stress. The Dollar- Yen pair rose more than 1% in recent sessions, underscoring the yens fading defensive appeal. With risk aversion elevated, capital has gravitated toward higher-yielding US assets, leaving the yen sidelined despite the increasingly fragile global backdrop.

Powered by Capital Market - Live News