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Dollar/yen outlook: Safe-haven dollar buying and yen buying on intervention fears set to clash

Thu Jun 11, 2026 5:12 pm JST Currency

The dollar is expected to face a tug-of-war between safe-haven buying driven by escalating Middle East tensions and yen buying fueled by intervention fears. The forecast range is 159.90-161.20 yen.

Iran's Islamic Revolutionary Guard Corps said on the 11th it struck U.S. Air Force bases in Kuwait and Bahrain in retaliation for new U.S. attacks, heightening Middle East tensions and bolstering safe-haven dollar buying. As U.S. crude futures remain elevated, speculation that Japan's trade balance could deteriorate is also dragging on the yen.

However, as the dollar approaches 160.72 yen?the April 30 high when Tokyo intervened?wariness over additional action is expected to temper yen selling. Equity markets will also be in focus; if major U.S. stock indexes like the Dow Jones Industrial Average and the Nikkei average post sharp declines, risk-off dollar selling and yen buying could dominate.

Later today, Japan time, the U.S. Producer Price Index (PPI) for May and weekly initial jobless claims are due for release. The European Central Bank (ECB) meeting outcome will also be closely watched.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.