Iran War Constrains Japan's Ability to Shore Up Yen -- Market Talk

0913 GMT - Japan could struggle to curtail the yen's depreciation against the dollar due to the U.S.-Iran conflict, MUFG Bank's Derek Halpenny says in a note. President Trump told Axios Thursday that he is close to deciding whether to launch a "massive attack" against Iran on a scale that is "bigger than ever before." A large attack that lifts oil prices even higher could increase market pricing for an interest-rate rise by the Federal Reserve on Wednesday, Halpenny says. "That will ensure Japan remains constrained by what they can do to curtail dollar/yen moving further higher." The dollar falls 0.1% to 163.71 yen, having reached a 40-year high of 163.98 on Thursday, according to LSEG. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 05:13 ET (09:13 GMT)