Yen Hits New Multidecade Low on Middle East Tensions
The yen plumbed a fresh, nearly 34-year low against the dollar, as traders bet Middle East tensions could make the Federal Reserve warier about rate cuts. Iran's weekend strike on Israel raised concerns that oil prices would stay high, prolonging above-target U.S. inflation. Rising oil prices this year could also quicken inflation in Japan and push the Bank of Japan to raise interest rates more quickly than expected, said BNP Paribas economist Ryutaro Kono.
