The battered yen languished near a 40-year low and was on track for a weekly loss on Friday, keeping traders wary of potential intervention from Japanese authorities as renewed Gulf hostilities loomed over markets.
Overnight investors seemed to brush off flaring tensions in the U.S.-Iran war as oil fell and stocks rallied, though currencies were mostly rangebound. But the fracturing of a fragile ceasefire between the two parties has once again cast a cloud over the outlook for energy prices and global inflation.
