Key facts
- The U.S. dollar eased on Wednesday after a four-day rally.
- The Japanese yen showed a slight recovery from a 40-year low.
- The dollar reached a new 40-year high against the yen.
- Oil prices increased due to Houthi attacks on Red Sea tankers.
- The dollar edged lower against the euro ahead of the ECB meeting.
The U.S. dollar saw a slight decline on Wednesday, breaking a four-day streak of advances. Concurrently, the Japanese yen experienced a modest recovery from its weakest position in nearly four decades. The dollar also reached a fresh 40-year high against the yen. These currency movements were influenced by heightened geopolitical tensions, including attacks on tankers in the Red Sea by Yemen's Houthis, which led to a reversal in oil prices and amplified inflation concerns. The USD/JPY pair was trading at 163.1000 JPY, showing a slight decrease of 0.02% for the day, but has seen a 11.23% return over the past year. The dollar also edged lower against the euro ahead of the European Central Bank's policy meeting.