Yen hits 40-year low as dollar soars on Middle East escalation

The Japanese yen weakened to 162.43 per dollar on July 13, 2026, marking a 40-year low as the dollar jumped on renewed US-Iran attacks and fears of a Hormuz strait closure. The move reflects a shift from Fed-rate positioning to geopolitical risk aversion, overriding carry-trade logic that has long favored dollar weakness among currency strategists.