Yen Up then Down: Tensions of the United States and Iran

Yen Up then Down: Tensions of the United States and Iran

As there are tensions between Iran and the United States market became a little bit worried. Nevertheless, it seems everything is going back to its healthy roots. Hosting United States forces in Iraq, Iran strikes at bases. After jumping to three-month peak yen retreats. ‘All is well!’ tweets Trump.

On Wednesday, currencies turned volatile. On the news of Iranian missile strikes on bases hosting United States troops in Iraq, safe-haven yen jumped. But after investors wagered, it would not trigger a broader conflict in the region yen retreated.

Forex Yen

The United States military said that more than a dozen ballistic missile shot through the night from Iranian territory. The weapons were heading towards the two Iraqi military bases.

According to a statement on state TV, Iran’s Islamic Revolutionary Guards Corps said they fired missiles to retaliate for last week’s killing of commander Qassem Soleimani.

It sent the yen to a three-month high. But after it settled back as the absence of immediate reports of casualties steadied nerves. From both sides, Twitter posts were playing down the prospect of further escalation. It also helped to calm the currency market.

The United States and Yen

United States President Donald Trump tweeted that a damage assessment was ‘so far, so good.’ Also, he added that everything is alright. On Wednesday, he promised to make a further statement shortly. Mohammad Javad Zarif, Iranian Foreign Minister, tweeted that the attack was “proportionate.” The Iranian side says that they don’t seek war or escalation.

The yen is regarded as a haven in times of turmoil. It is because of the virtue of Japan’s status as the world’s biggest creditor. The haven jumped as 0.8% to 107.63 per dollar. But it was back only a little above where it been the day during midsession.

Global head of flow FX at Nomura in Singapore is Stuart Oakley. He said that the market was anxious about the end of the world was nigh. Also, many thought USD/JPY would collapse, but it never happened.

These are the main news for now.