Middle East Oil Blockade Weighs on Japanese Yen
The Japanese Yen is struggling to attract buyers as economic concerns grow over instability in the Strait of Hormuz. The US Navy blockade of Iranian ports, which took effect on Monday, threatens to constrain oil flows through a vital waterway. Japan depends mostly on oil imports from the Middle East. Constraints on these flows fuel worries that the Japanese economy will come under substantial strain. This economic strain undermines the value of the Yen, leaving the USD/JPY pair oscillating in a narrow band below 159.00.
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