The Japanese yen climbed against the U.S. dollar on Monday in Asia amid increased geopolitical tensions in the Middle East following weekend attacks on Saudi oil plants interrupted global oil supplies.
The USD/JPY pair fell 0.3percent to 107.80 from 12:00 AM ET (04:00 GMT).Drone strikes attacked an oil processing centre at Abqaiq, the world's biggest, and the neighbouring Khurais oil area on Saturday and pumped out 5 per cent of global oil supply.
Yemen's Iran-aligned Houthi group asserted responsibility for the harm, but the U.S. Secretary of State Mike Pompeo has pointed the finger right at Iran because he stated over the weekend that Iran had established an"unprecedented assault on the planet's energy source."The news intensified tensions in the Middle East, sending the yen higher as it brought safe-haven demand.
The U.S. dollar traded marginally lower ahead of the interest rate cut from the Federal Reserve on Wednesday.
The U.S. dollar indicator that monitors the greenback from a basket of different currencies slipped 0.1percent to 97.732. The Bank of Japan is also expected to meet this week.
Some consider the central bank could push interest rates into negative territory and creep up sparking policies.Sino-U.S. trade developments also stayed below the spotlight as junior U.S. and Chinese officials will reportedly meet this week ahead of proposed talks between senior trade negotiators at October.
Tensions between the two sides slipped somewhat recently following Beijing exempted some agricultural goods from additional tariffs on U.S. products a week and U.S. President Donald Trump declared a tariff growth on a selection of Chinese products by fourteen days.
The USD/CNY pair slipped 0.1percent to 7.0717. The AUD/USD pair edged down 0.1percent to 0.6872, while the NZD/USD pair gained 0.2percent to 0.6381.