Dollar Steady Near 157.25 as Intervention Risk and Middle East Tensions Loom
The US dollar held steady near 157.25 against the yen on Monday, despite the risk of Japanese intervention in the currency market.
Japan's top currency diplomat, Atsushi Mimura, reiterated official concern over the yen's weakness and referenced a 'very clear message' from Japan and the United States, but offered no indication of whether Tokyo would step back into the market.
The pair is approaching 160, a level that has been defended by Japanese intervention in April and July, with previous episodes keeping traders wary. The yen firmed earlier, but USD/JPY traded little changed near 157.25 overall.
The US 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.