Yen nears four-decade low as dollar gains from renewed Iran strikes

The Japanese yen remained near a four-decade low against the US dollar on Friday, July 10 (19 Tir), with the dollar trading around 162.36 yen, on track for a weekly gain of more than 0.5% against the Japanese currency. According to Business Recorder and Trading Economics, the US dollar benefited from safe-haven demand after fresh US air strikes on Iran in response to attacks on vessels transiting the Strait of Hormuz, while the yen failed to draw similar support despite the escalating geopolitical tensions. The Bank of Japan held its short-term policy rate at 0.75% at its June 15 to 16, 2026 meeting, and traders remain wary of possible direct government intervention to shore up the yen.