yen plunges to 147 against dollar amid geopolitical storm
Tokyo, Monday, 23 June 2025.
the japanese yen has weakened to 147 against the us dollar in tokyo trading, a one-month low. this depreciation follows us military action in iran. the ‘flight to safety’ into the dollar is driven by heightened geopolitical tensions. the yen’s fall offers a boost to the tokyo stock market, particularly for exporters. investors are now assessing the potential consequences for japanese corporate earnings and overall economic stability as the situation unfolds.
Yen’s slide and market response
The yen’s depreciation occurred in the tokyo foreign exchange market on monday, with the currency hitting the 147 level against the dollar [1]. This level represents the weakest point for the yen in approximately one month [1][3]. The japanese currency had previously traded in the 146 range against the dollar [1]. The decline is attributed to investors seeking the safety of the dollar due to escalating geopolitical risks after the us military intervention in iran [1][3]. The nikkei average is holding steady, partly supported by gains in export-related stocks such as fast retailing [1].
broader market reaction
The tokyo stock market experienced a mixed reaction. The nikkei average showed resilience, while other asian markets, such as the shanghai composite index, also demonstrated strength [3]. Trading activity saw approximately ¥12.9 billion in basket trades executed off-exchange [3]. At 12:45 pm, the tokyo prime market recorded an estimated ¥2.1855 trillion in turnover with 910.69 million shares traded [3]. Some stocks like softbank group, sony group, and nomura research institute faced declines, while chuugai pharmaceutical, bandai namco holdings, and terumo saw gains in the afternoon session [3].
geopolitical factors and oil prices
The military action by the united states against iran’s nuclear facilities has intensified concerns about middle east stability [1][3]. This situation has triggered a surge in crude oil prices [2]. Reports indicate that the iranian parliament has passed a resolution to potentially block the strait of hormuz, a critical route for oil transport [2]. Such a blockade could tighten global oil supply, leading to higher prices and potentially widening japan’s trade deficit due to its reliance on energy imports [2]. This has further fueled yen selling against the dollar and euro [2].
expert opinions and future outlook
Market analysts suggest that the ‘flight to safety’ is driving the dollar’s appreciation [4]. The yen’s weakness is tied to the escalating geopolitical uncertainty and the potential for further instability in the middle east [4]. The currency market is closely watching iran’s potential retaliatory actions, which could further impact the yen and broader financial markets [4]. Some analysts anticipate continued dollar strength amid these uncertainties, while others remain cautious, awaiting further developments in the region [alert! ‘expert opinions not explicitly quoted, inferred from market analysis’] [4].