Asian Currencies Mixed as Yen Hovers Near 160, Dollar Steady After Warsh Comments

The Asian currencies traded mixed on Monday as the Japanese yen hovered near the closely watched 160-per-dollar level. The U.S.-Iran conflict drove oil prices higher, reinforcing a broader risk-off mood across regional markets.

The U.S. dollar was broadly firm after Federal Reserve Chair Kevin Warsh's hawkish comments pushed markets to price in a higher chance of a September rate hike. The implied probability rose to about 57%, while two-year U.S. Treasury yields climbed to a more than one-month high of 4.33%.

The Japanese yen's return toward 160 per dollar has put the possibility of further Japan-U.S. intervention back in focus, after the two countries intervened jointly in late July.