FX Snapshot

The ongoing US/Iran conflict is driving up energy prices, forcing central banks in oil-importing countries like Japan and Turkey to intervene in currency markets to stem depreciation.

Key Takeaways

• 1.Central banks in major oil-importing nations are intervening in FX markets to mitigate currency weakness driven by rising energy prices from the US/Iran conflict.
• 2.The Bank of Japan (BoJ) has spent approximately $67bn in late April and early May 2026 to support the Yen, liquidating U.S. Treasuries to do so.
• 3.Emerging market central banks including India, Indonesia, the Philippines, and Turkey are also liquidating FX reserves to push back against market-driven currency weakness.

Table of Contents

• Analyst Team
• Central Banks Drafted Into FX Intervention As US/Iran Conflict Continues

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