The Japanese yen increased in early trading on Monday, reversing previous losses as rising tensions in the Middle East heightened demand for the currency as a safe haven.
Tel Aviv is contemplating a response to a rocket attack in the Israeli-occupied Golan Heights that resulted in the deaths of 12 individuals. Both Israel and the United States have blamed Lebanon’s Hezbollah for the attack on the town of Majdal Shams in the Golan.
The market’s reaction reflects the fragility of investor sentiment following last week’s swift sell-off in technology stocks, which propelled the yen to a 12-week high against the dollar on Thursday.
The dollar last traded down 0.17 percent at 153.51 yen after initially declining by 0.35 percent.
The dollar began trading today with an increase of approximately 0.36 percent as the global stock market recovery continued from Friday into Monday in Asia, where shares of the Japanese Nikkei index rose by more than two percent.
The dollar dropped to 151.945 yen on Thursday for the first time since May 3 and concluded the week down 2.4 percent, marking its worst weekly performance since late April.
The dollar index, which gauges the currency against the yen, euro, pound, and six other major currencies, declined by 0.19 percent to 104.17.
The euro fell by 0.15 percent to 166.53 yen.
It settled at 84.35 British pence, close to its highest level of 84.48 pence on Friday, the strongest since July 10.
The pound increased by 0.14 percent to $1.2885.
The Australian dollar rose by 0.24 percent to $0.6563, recovering from Friday’s low of $0.65105, which had not been seen since early May.
Bitcoin, the major cryptocurrency, increased by 2.6 percent to $69,212 after receiving some support from positive remarks by former US President and Republican presidential candidate Donald Trump. On Saturday, Trump stated that the United States must lead in the bitcoin sector, or else China will.
Japanese Yen Rises Amid Middle East Tensions
The Japanese yen rose in early trading on Monday, reversing earlier declines as escalating tensions in the Middle East increased demand for the Japanese currency as a safe haven.
Tensions in the Middle East Impact Currency Markets
Tel Aviv is considering a response to a rocket attack on the Israeli-occupied Golan Heights that killed 12 people. Israel and the United States have accused Lebanon’s Hezbollah of being responsible for the attack on the town of Majdal Shams in the Golan.
Investor Sentiment Wavers
The market reaction reveals the fragility of investor sentiment following last week’s rapid sell-off in technology stocks that helped the yen rise to a 12-week high against the dollar on Thursday.
Current Exchange Rates
| Currency | Exchange Rate |
|---|---|
| USD/JPY | 153.51 |
| EUR/JPY | 166.53 |
| GBP/USD | $1.2885 |
| AUD/USD | $0.6563 |
| Dollar Index | 104.17 |
The Yen’s Performance this Week
The dollar was last down 0.17 percent at 153.51 yen after initially falling 0.35 percent. The dollar dropped to 151.945 yen on Thursday for the first time since May 3, and ended the week down 2.4 percent in its worst weekly performance since late April.
Impact of Global Market Recovery
The dollar started trading today with a rise of about 0.36 percent as the global stock market recovery extended from Friday to Monday in Asia, with the average shares of the Japanese Nikkei index rising by more than two percent.
Other Currency Movements
In addition to the yen’s rise, the dollar index, which measures the currency against the yen, euro, pound, and six other major currencies, fell 0.19 percent to 104.17. The euro fell 0.15 percent to 166.53 yen. Meanwhile, the pound rose 0.14 percent to $1.2885, and the Australian dollar climbed 0.24 percent to $0.6563, recovering from Friday’s low.
Cryptocurrency Trends
Major cryptocurrency bitcoin rose 2.6 percent to $69,212 after receiving support from positive comments from Republican presidential candidate and former US President Donald Trump. Trump stated that the United States must dominate the bitcoin sector or risk being overtaken by China.
Takeaways from Recent Trends
- The yen is increasingly seen as a safe haven amid geopolitical uncertainties.
- Technology stocks’ volatility can significantly impact currency exchange rates.
- A strong global market can influence currency recovery trends significantly.
- Political commentary can sway cryptocurrency markets remarkably.
