Yen, Euro Weaken as Middle East Conflict Boosts Dollar
The yen and euro fell against the dollar Tuesday as the widening Middle East conflict heightened focus on energy-importing nations and central banks' inflation responses. The dollar gained safe-haven demand amid U.S.-Iran tensions spilling into neighboring countries. Crude prices rose for a third day after Iran threatened attacks on ships through the Strait of Hormuz. Japan's Finance Minister Satsuki Katayama confirmed currency intervention remains an option to defend the yen. Europe and Japan face greater energy cost exposure than the U.S., which is a net energy exporter. This could pressure Nigeria's economy through higher import costs and potential central bank policy shifts. Monitor inflation trends and forex interventions in key markets.