The Australian dollar  spiked in value by 0.67% toward the end of last week to its highest weekly close in seven weeks. While the war in Iran has weighed heavily on the global economy, news that the US Treasury had jointly intervened with Japan to prop up the yen for the first time in nearly three decades immediately sent the Australian dollar upward on Friday.

“The action pushed the yen to its strongest levels since early May and contributed to broad big dollar softness that supported the Australian dollar. A late-week rebound in global equities and risk sentiment provided an additional tailwind for the Aussie dollar,” said Tony Sycamore, a market analyst at IG.