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Dollar-Yen eases after hawkish Fed signals and Iran war premium
The yen had been supported by a firmer dollar backdrop earlier in the day, with initial jobless claims at 215K versus a 218K consensus and US strikes across Iran impacting crude and FX risk.
The dollar-yen pulled back slightly on Thursday, trading just below 162.50 after fading from four-decade highs earlier in the week, according to FXStreet.
The yen's move came as the US dollar got support from data and policy signals, with initial jobless claims printing 215K at 12:30 GMT against a 218K consensus, and multiple remarks from Federal Open Market Committee members scheduled during the session.
FXStreet also tied the broader dollar tone to a fresh war premium in crude oil after the United States carried out strikes on Iran overnight, following Tehran attacks on commercial shipping in the Strait of Hormuz.
With Japan importing nearly all of its energy, the report said headlines around the Hormuz situation can quickly affect the terms of trade for yen holders, helping explain why the pair reached its highest levels since 1986 even as the latest push in dollar strength began to stall.
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