• The Dollar is the Best Safe-Haven Investment Amid Global Geopolitical Tensions
• Doubts Surround Japan’s Interest Rate Hike in July

The Japanese yen declined in the Asian market on Monday against a basket of major and minor currencies, deepening its losses for the third consecutive day against the U.S. dollar and recording its lowest level in six weeks. Expectations point to further declines toward the 148 yen per dollar level.

This drop comes as investors focus on buying the U.S. dollar as the best alternative investment amid escalating global geopolitical tensions, particularly following U.S. airstrikes on Iran’s nuclear sites.

Last week’s cautious meeting by the Bank of Japan led to a decline in expectations for monetary policy normalization and an interest rate hike in July, as markets await more economic data on inflation, wages, and unemployment in the world’s third-largest economy.

Price Overview

• USD/JPY today: The dollar rose against the yen by approximately 0.5% to ¥146.76 — the highest since May 15 — from Friday's closing price of ¥146.06, with a low of ¥146.10 during today’s session.
• The yen lost 0.4% against the dollar at Friday’s settlement, marking its second daily loss in a row, amid escalating military confrontations between Israel and Iran.
• Last week, the yen lost 1.4% against the dollar, recording its third weekly loss in a month due to increased safe-haven buying of the U.S. dollar and fading expectations of a Japanese rate hike.

U.S. Airstrikes

Over the weekend, the United States carried out air and missile strikes targeting three key Iranian nuclear facilities (Fordow, Natanz, and Isfahan). The operation involved more than 125 U.S. military aircraft, including seven B-2 Spirit stealth bombers.

The stealth bombers dropped 30,000-pound bunker-busting bombs on the Fordow site — the most fortified facility, buried 80–90 meters deep beneath the Zagros Mountains. Additionally, U.S. submarines launched 30 Tomahawk missiles at targets in Natanz and Isfahan.

The U.S. strikes came just days after Israeli attacks on Iran that began on June 13, targeting nuclear and military installations. These attacks provoked Iranian retaliation with missiles and drones launched toward Israel.

The U.S. President indicated that the strikes aimed to weaken Tehran’s nuclear program. In a speech on the Truth Social platform, Trump called on Iran to “make peace” and warned of further strikes if U.S. bases and interests in the Middle East are targeted.

Satellite imagery showed six large craters from bunker-busting bombs at the Fordow nuclear site, with scattered concrete rubble indicating severe damage — though the facility was not completely destroyed.

At Natanz — Iran’s largest uranium enrichment facility — previously damaged by Israeli strikes on June 13, the U.S. attacks targeted underground enrichment halls. Two new craters were visible in satellite photos.

In Isfahan, which houses a uranium conversion facility, Tomahawk missiles targeted above-ground buildings, with reports of six additional structures destroyed.

Iran condemned the U.S. strikes as a “brutal violation of international law” and vowed “harsh” retaliation through Foreign Minister Abbas Araghchi. The Iranian parliament approved the closure of the Strait of Hormuz. Meanwhile, the Iranian Revolutionary Guard launched ballistic missiles at Israel, hitting Tel Aviv and Haifa.

U.S. Dollar

The U.S. Dollar Index jumped 0.4% on Monday, reaching a two-week high of 99.16 points, reflecting strength in the dollar against a basket of major and minor currencies.

This rise comes amid aggressive dollar buying as a safe-haven investment, while markets await Iran’s response to the American strikes on its nuclear sites, which have intensified geopolitical tensions in the Middle East.

Opinions and Analysis

• Carol Kong, a currency strategist at the Commonwealth Bank of Australia, stated that markets are in a state of anticipation regarding Iran’s response, with heightened concerns about the inflationary impact of the conflict outweighing potential negative economic effects.
• Charu Chanana, Chief Investment Strategist at Saxo, noted that markets currently view the U.S. strikes on Iran as a contained event rather than the beginning of a broader war.

Japanese Interest Rates

• The pricing of a potential 25 basis point rate hike by the Bank of Japan at the July meeting remains below 40%.
• Investors await further data on inflation, unemployment, and wages in Japan before reassessing those expectations.

• The leading cryptocurrency hits a 6-week low
• Bitcoin targets $97,000 per coin

Bitcoin prices declined during Sunday trading, deepening losses for the fourth consecutive day, as it lost trading above the psychological barrier of $100,000, recording the lowest level in six weeks amid intense sell-offs dominating high-risk asset markets.

The open sell-offs came after U.S. President Donald Trump announced that American bombers and missiles struck Iran’s three main nuclear sites.

Price Overview

• Bitcoin price today: On the Bitstamp exchange, the price of Bitcoin fell by around $2,768, or 2.7%, to $99,430 — the lowest since May 8 — down from the opening price of $102,198. The session’s high was $103,387.
• At Saturday’s close on Bitstamp, Bitcoin prices dropped 1.1%, marking the third consecutive daily loss.

Market Cap of Cryptocurrencies

The total market capitalization of cryptocurrencies fell by more than $55 billion on Sunday to a total of $3.232 trillion, amid the current decline in Bitcoin and Ethereum prices.

U.S. Strikes on Iran

U.S. President Donald Trump confirmed the execution of military strikes on Iranian nuclear facilities aimed at weakening Tehran’s nuclear program. The operation targeted key sites, causing significant material damage according to initial reports.

In a speech on the Truth Social platform, Trump called on Iran to "make peace," threatening additional strikes if American bases and interests in the Middle East are targeted.

The strikes triggered sharp geopolitical tensions, with international reactions calling for restraint. Risky asset markets, including cryptocurrencies, fell, while oil prices rose on concerns of potential supply disruptions.

Bearish Outlook

• Some specialized sites reported the presence of order book liquidity, which may provide the first major support zone around $97,000.
• Renowned trader Cass Abee noted, “Bitcoin is expected to drop to between $93,000 and $94,000 before bottoming out and reversing.” Abee added that the probability of hitting a low of $90,000 does not exceed “20%-25%.”

Gold prices maintained their stability on Thursday as investors analyze the escalating Iran-Israel conflict, while platinum prices hit September 2014 highs. 

Gold spot prices settled at $3369 an ounce as of 09:55 GMT, while US gold futures fell 0.6% to $3387.

Iranian missiles hit an Israeli hospital on Thursday, while Israel continues to target vital sites inside Iran, with US President Trump hinting at a potential entry into the war.

Fed’s Policy Boost Gold

The Federal Reserve maintained interest rates unchanged while expecting 0.5% of rate cuts this year despite the challenging economic outlook.

Fed Chair Powell continued to warn against potentially higher inflation due to tariffs.

Gold is a beneficiary of low interest rates, and is also sought in times of instability. 

Platinum at Historic Highs

Platinum dipped 2.5% to $1,288 an ounce after earlier spiking to September 2014 highs.

Platinum is boosted by higher Chinese imports and supply concerns and higher mineral rental prices, with investors also seeking cheaper gold alternatives. 

Higher demand outlook, combined with wobbly supplies and supportive technical signals continue to boost platinum prices.

Fears of US tariffs also led to a surge of platinum shipments into the US, which raised the costs of storing the metal.

Current one-month rent rates for platinum is now up 13.5% y/y, 

Supply Deficit 

The International Platinum Investment Council expects the market to suffer a supply deficit of a million ounces this year.

Platinum is used in lab equipment and auto catalytic inverters, and is also considered an investment asset. 

Platinum is up 32% so far this year, outperforming gold’s 26% surge in the same period. 

Bitcoin settled below $105,000 on Thursday despite mounting risk aversion amid geopolitical tensions and a bullish stance by the Federal Reserve.

Bitcoin is up 0.4% as of 14:08 GMT to $104.8 thousand on Coinmarketcap.

Bitcoin is holding its ground despite market volatility, with NASDAQ closing down on Wednesday, and US stock futures wavering on Thursday.

Trump Agrees on Iran Strike Plans

Reports showed that Trump has approved plans for a strike against Iran but hasn’t issued the final order yet. 

The Iran-Israel military conflict continues viciously, with the US eyed for a role at busting an Iranian nuclear site deep under a mountain with a 30,000 pound bomb. 

Trump said he may or may not do it.. With the uncertainty sending gold and other alternative assets higher. 

Bullish Fed Stance

The Fed maintained interest rates unchanged while raising its inflation outlook for this year and the next.

The bullish tone of the Fed raised concerns that interest rates might remain high for an extended duration, pressuring high-risk assets such as cryptocurrencies. 

Trump Lauds New Crypto Bill

Trump welcomed the Senate’s approval of the Genius Act bill to regulate Stablecoins. 

Trump called on the House to move quickly to approve the bill and send it to him to sign. 

The news boosted some crypto-related corporate stocks, but the impact on the crypto market itself remained muted.