TOKYO – The Japanese yen traded in the lower 163 range against the US dollar in Tokyo early Wednesday, a level unseen since December 1986.

At 9 am local time, the US dollar fetched 163.18-20 yen compared with 163.13-23 yen in New York.

Dollar-buying came as investors sought the US unit as a safe asset amid escalating tensions in the Middle East.

A weaker yen inflates the value of imported materials from energy to food, dealing a blow to the resource-poor country and Japanese households.