Yen Weakens on Geopolitical Tensions, USD/JPY Rises toward 162.40

The Japanese yen weakened on Monday, with USD/JPY trading near 162.40 as geopolitical risks and policy concerns weighed on the currency.

Escalating tensions between the United States and Iran, particularly around the Strait of Hormuz, are boosting safe-haven demand for the US dollar. Higher oil prices, driven by these tensions, are adding to inflation concerns and further supporting the greenback.

Growing worries that renewed energy price pressures could keep global inflation elevated have also contributed to yen weakness, as the Bank of Japan's policy stance remains accommodative relative to the Fed.