USD/JPY near 102 on Iraq Conflict

The yen rose versus most of its major peers as violence in Iraq spurred concerns oil supplies will be disrupted and bolstered the appeal of haven assets.

Japan’s currency touched the strongest level in four months against the euro after Iraq’s military attacked insurgents who had captured territory north of Baghdad. Poland’s zloty weakened after leaked recordings cast doubts that the central bank governor can stay in his job. The pound rose as the Bank of England’s deputy governor said an interest-rate increase will show the economy is returning to normal, and the yuan fell the most in almost three months as the central bank cut the reference rate.

“We’re paying a lot of attention to the geopolitical tension,” Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA, said by phone. “The yen is benefiting.”

Bloomberg

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