US-Iran Tensions Drive Dollar to 40-Year High Against Yen
The U.S. dollar has reached a 40-year high against the yen, bolstered by rising oil prices and geopolitical tensions in the Middle East. The dollar's strength is attributed to renewed hostilities in the U.S.-Iran conflict, which have reversed oil prices and heightened inflation fears. This has increased expectations that the Federal Reserve may raise interest rates. The U.S. economy is perceived as more resilient to energy price shocks compared to Europe and Japan, further supporting the dollar. Meanwhile, the European Central Bank (ECB) has kept interest rates unchanged, citing concerns over energy prices and inflation. 
