Dollar Firms on Rising US Yields, Intervention Caution Caps Upside

The dollar-yen exchange rate strengthened in the lower 159 yen range during morning trading in Tokyo on the 25th, as U.S. long-term interest rates rose in after-hours trading.

Dollar buying dominated the session, but caution over potential currency intervention by the Japanese government and the Bank of Japan capped the upside, keeping the trading range narrow.

The pair was trading at 159.36-36 yen as of noon, up 21 sen from the previous day's 5:00 p.m. level.

Market participants tracked the rise in U.S. yields and noted that dollar buying had advanced on concerns over tightened U.S. sanctions against Iran.