13.06.2025 11:24

Geopolitical tensions in the Middle East have sent ripples through global currency markets, notably boosting the US dollar against the Japanese yen. The USD/JPY exchange rate surged, nearing 144.00, fueled by a risk-averse environment spurred by Israeli military action against Iran. This escalation of conflict increased demand for the perceived safety of the US dollar, leading to its appreciation.


Meanwhile, both the US Federal Reserve and the Bank of Japan are anticipated to maintain their current interest rate policies next week, a factor which, although not directly driving the immediate USD/JPY surge, provides a stable backdrop against which these market movements play out. The strengthening of the US dollar wasn't isolated to the Japanese yen; a broader strengthening of the US Dollar Index (DXY) to nearly 98.35, a significant recovery from its Thursday low of 97.60 (a three-year low), indicates a widespread increase in its value against major world currencies.


This strengthening is clearly visible in a comparative analysis of major currencies. The US dollar experienced significant gains against several currencies, with the New Zealand dollar showing the most substantial decline. The following table, derived from internet sources, illustrates the percentage change in the US dollar's value against other major currencies:


| Currency | USD Change |
|---|---|
| EUR | +0.51% |
| GBP | +0.45% |
| JPY | +0.43% |
| CAD | +0.16% |
| AUD | +0.77% |
| NZD | +1.00% |
| CHF | +0.33% |


This heatmap, also from internet sources, provides a detailed visualization of the relative movements of major currencies against each other, showcasing the US dollar's prominent strength. The table uses a base currency (left column) against a quote currency (top row). For example, the intersection of USD (base) and JPY (quote) shows the percentage change in the USD/JPY pair. The observed pattern suggests a flight to safety, with investors favoring the US dollar amidst the escalating geopolitical uncertainties.