The yen rallied on Friday against a basket of major rivals, extending the gains for the third straight session against the dollar and hitting a week on haven demand after Israel launched air strikes against Iran.

The Bank of Japan is convening next week to discuss latest economic policies, with a less than 50% chance of a 0.25% rate hike.

The Price

The USD/JPY price fell 0.5% today to 142.79 yen per dollar, a week low, with a session-high at 143.52.

The yen rose 0.75% on Thursday against the dollar, marking the second profit in a row on haven demand following downbeat US producer prices data.

Weekly Trades

The yen is up 1.4% so far this week against the dollar, on track for the first weekly profit in three weeks.

Israel’s Strike Against Iran

Israel launched a heavy military operation against Iran, targeting nuclear facilities and ballistic missile factories and military leaders.

The Israeli army said the operation aims at preventing Tehran from developing a nuclear weapon and described it as the start of a long-term military operation, with Israel's air space closed in preparation for Iranian responses.

US officials asserted that America hasn’t participated or supported the operation.

The US administration started to transport some of its personnel from several Middle Eastern countries and warned from heightened security risks, while spreading  additional air defense systems to protect US military bases in the region.

Japanese Rates

The Bank of Japan is meeting on June 16-17 to discuss the latest economic developments and suitable policies.

Following recent GDP growth data, the odds of a Bank of Japan 0.25% interest rate hike in June rose from 40% to 45%.

Bank of Japan Deputy Governor Shinichi Uchida said the bank will continue to raise interest rates if the economy recovers from the negative impact of US tariffs, however he still cautioned that the economic outlook remains highly uncertain.

Now traders await more Japanese data on inflation, unemployment, and wages to gather additional clues.

Most cryptocurrencies fell on Thursday amid a weaker risk appetite due to mounting geopolitical tensions. 

Reuters sources indicated Israel is considering a military attack against Iran in days without waiting for US support. 

US President Trump commented on the news by saying such an attack is very possible, adding that Iran shouldn’t be allowed to have a nuclear weapon.

Trump also said he’s willing to extend the final July 8 deadline to carry on trade talks, but warned that the US will send messages in the next few weeks to tens of countries to set trade terms.

Earlier US data showed producer prices rose 2.6% y/y in May, beating estimates of 2.5%.

US unemployment claims came at 248 thousand in the week ending June 7, same as the previous week, and up from estimates of 246 thousand.

Following the data, Trump renewed his attacks on Fed Chair Jerome Powell and called him a fool, but said once more he won’t fire him.

Ethereum 

On trading, ethereum fell 3.7% as of 21:11 GMT on Coinmarketcap to $2697.6.

Oil prices fell on Thursday after a 4% surge in the previous session amid mounting geopolitical tensions in the Middle East.

Reuters sources indicated Israel is considering a military attack against Iran in days without waiting for US support. 

US President Trump commented on the news by saying such an attack is very possible, adding that Iran shouldn’t be allowed to have a nuclear weapon.

Otherwise, JPMorgan’s analysts maintained their outlook for oil prices in 2025 and 2026 as current prices already reflect such risks.

On trading, Brent futures due in August fell 0.6%, or 41 cents to $69.36 a barrel.

US crude futures due in July fell 0.2%, or 11 cents to $68.04 a barrel.

The US dollar fell against most major rivals on Thursday, plumbing a three-year nadir before paring the losses following US inflation data.

US President Trump said he’s willing to extend the final July 8 deadline to carry on trade talks, but warned that the US will send messages in the next few weeks to tens of countries to set trade terms.

Earlier US data showed producer prices rose 2.6% y/y in May, beating estimates of 2.5%.

US unemployment claims came at 248 thousand in the week ending June 7, same as the previous week, and up from estimates of 246 thousand.

Following the data, Trump renewed his attacks on Fed Chair Jerome Powell and called him a fool, but said once more he won’t fire him.

Otherwise, the dollar index fell 0.7% as of 20:14 GMT to 97.9, with a session-high at 98.5, and a three-year low at 97.6.

Sterling

The GBP/USD pair rose 0.4% as of 20:33 GMT to $1.3596.

Recent data showed UK GDP shrank 0.3% in April, while analysts expected a 0.1% contraction.

Aussie

The AUD/USD pair rose 0.4% as of 20:33 GMT to $0.6528.