Dollar Steady Near 157.25 Against Yen Amid Intervention Risk

The US dollar traded steady near 157.25 against the Japanese yen on Monday, as markets weighed Middle East headlines and the risk of Japanese intervention.

Atsushi Mimura, Japan's top currency diplomat, reiterated official concern over the yen's weakness and referenced a 'very clear message' from Japan and the US, but offered no indication whether Tokyo would intervene in the market again.

Previous intervention episodes in April and July have kept traders wary as the pair edges towards 160. The threat of a sudden, sharp reversal is highly credible given Japanese policymakers' warnings that they are ready to fund further action.

The US 10-year Treasury yield rose to 5.27%, its highest since 2007, while Japan's 10-year government bond yield approached 3.1%, the highest since 1996, keeping the yield gap supportive of the dollar.