2026.03.0601:54:31UTC+00Yen Heads for Third Weekly Fall

The Japanese yen hovered around 157.5 per dollar on Friday and was on track for a third straight weekly decline, weighed down by broad dollar strength as investors sought the US currency amid escalating conflict in the Middle East. The US–Israeli offensive against Iran has entered its seventh day, while Tehran has launched a new wave of missile and drone attacks across the Gulf.

The yen also came under pressure from surging oil prices, underscoring Japan’s heavy dependence on energy imports from the Middle East. Bank of Japan Governor Kazuo Ueda cautioned that the conflict could have a significant impact on Japan’s economy, suggesting that interest rates are likely to remain on hold for an extended period.

Meanwhile, Finance Minister Satsuki Katayama reiterated this week that currency market intervention remains an option to support the yen, stressing that authorities are monitoring the currency’s slide “with a strong sense of urgency” and are coordinating closely with the United States.