Dollar-Yen Exchange Rate Falls to 162.28 on July 14 Amid U.S.-Iran Tensions

According to Yonhapinfomax, on July 14, the dollar-yen exchange rate fell 0.05% to 162.28 yen as tensions between the United States and Iran escalated. U.S. Central Command announced it completed airstrikes on Iranian military targets on July 13, while President Donald Trump said the U.S. would reinstate a maritime blockade on Iran and collect tolls from vessels passing through the Strait of Hormuz. These developments pushed West Texas Intermediate crude oil prices above $79 per barrel, up more than 2%.

Meanwhile, Federal Reserve Governor Christopher Waller made hawkish remarks, suggesting the Fed may tighten monetary policy if core inflation data this week remains elevated. Following Waller's comments, CME FedWatch data showed the probability of a 50 basis point rate hike by end-September rose to 23.5% from 18.4%, while the probability of rates remaining unchanged fell to 25.2% from 30.4%.