Dollar surges as geopolitical risk reshapes currency markets; yen hits 40-year low

The yen weakened to 162.43 per dollar on July 13, 2026—a 40-year low—as the dollar jumped on US-Iran escalation and Hormuz strait closure fears. The shift marks a pivot: geopolitical risk aversion now trumps the carry-trade logic that has long favored dollar weakness among currency strategists.