The Japanese yen fell sharply around a 40 year low amid reports signaling prospects of faster BOJ rate hikes and potential currency intervention. USD/JPY pair was last seen quoting at 163.38, up 0.13% and at its highest level in around four decades. Besides, ongoing geopolitical tensions that are sending global oil prices higher and could sharply widen Japan's trade deficit is also heavily depressing the yen as Japan heavily depends entirely on imported energy. The Japanese yen has plummeted to a fresh four-decade low, sliding past 163 per US dollar (USD) for the first time since December 1986. Firm dollar amid increased tensions in the U.S.-Iran war have caused a reversal in oil prices and again fanned inflation fears. U.S. President Donald Trump promised to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz, the latest escalation after Iran-allied Houthis in Yemen threatened a second vital energy route.
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