The yen strengthened towards the nearly seven-month high touched against the dollar on Tuesday as traders exited short positions in the Japanese currency amid expectations for faster Bank of Japan interest rate hikes and a potential rush of repatriation of Japanese capital.
A drone view shows vessels near the Strait of Hormuz, as seen from Musandam, Oman, Aug. 28, 2026. (Reuters/STR)
Brent crude rallied towards $100 per barrel on Wednesday, keeping the mood in Asian stock markets subdued, as attacks intensified in the Middle East, stoking inflation worries ahead of the release of closely watched US consumer price data.The yen strengthened towards the nearly seven-month high touched against the dollar on Tuesday as traders exited short positions in the Japanese currency amid expectations for faster Bank of Japan interest rate hikes and a potential rush of repatriation of Japanese capital.
The euro edged higher ahead of the European Central Bank's policy decision on Thursday, with markets widely expecting a hike amid inflationary pressures from the Iran war.
Iranian-backed Houthis in Yemen launched strikes on several Saudi cities on Tuesday, further embroiling a US ally in the conflict, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan.
