Yen and euro face downward pressure as Middle East tensions raise worries over energy supplies

Yen and Euro Weaken Amid Escalating Middle East Tensions

On Tuesday, both the yen and the euro experienced notable declines as the intensifying conflict in the Middle East raised concerns for nations reliant on energy imports. Investors turned to the US dollar as a safe haven, especially as military actions involving the US and Israel against Iran began to affect neighboring regions.

The euro managed to stabilize after dropping over 1%, with uncertainty lingering over when oil supplies from the affected area might resume. Meanwhile, Japan's Finance Minister Satsuki Katayama indicated that the government may consider intervening in currency markets to support the yen. Additionally, a speech by Bank of Japan Governor Kazuo Ueda drew attention from market watchers.