Economy

Dollar Steadies, Yen in Turmoil

Publish date: July 23, 2026 07:49 KSA

The dollar steadied largely today, as tensions between Washington and Tehran boosted demand for the currency, a safe-haven asset, while the yen remained near its lowest level in 40 years without any significant signs of a change in direction.

The dollar index, which measures the performance of the US currency against a basket of currencies, steadied at 101.11, and the dollar rose, leading to higher oil prices and fueling inflation fears. Brent crude futures rose more than 1.3% today to $95.31 a barrel.

Two-year US Treasury yields rose to their highest level in 17 months on Wednesday, as higher oil prices fueled inflation fears, increasing the likelihood of a US interest rate hike. The euro rose 0.02% to $1.1412, while the Australian dollar fell 0.1% to $0.6989, and the New Zealand dollar fell nearly 0.1% to $0.5811. Sterling was last at $1.3373, and the Japanese yen rose 0.02% to 163.1 against the dollar, erasing its gains, and the currency fell to 163.23 on Tuesday, its lowest since December 1986.