If the conflict in the Middle East is prolonged, the Japanese yen may come under pressure.

Mitsubishi UFJ Financial Group's Lee Hardman said in a report that if the Middle East conflict lasts longer than expected, the yen may weaken. He said that an extended conflict may make the Bank of Japan cautious about further interest rate hikes in the short term. He stated that this will help push the yen lower, and the negative impact on the Japanese economy from the rise in energy prices will also be felt. Bank of Japan Governor Haruhiko Kuroda said on Wednesday that the rise in energy prices could have a significant impact on the country's economy. The US dollar rose 0.4% against the yen to 157.64 yen.