Dollar-Yen Holds Firm Amid Middle East Tensions and Rising US Yields

The dollar-yen pair held firm in New York trading on Monday, maintaining its position within the 158 range due to rising US yields and heightened tensions in the Middle East. The Wall Street Journal reported that President Trump had discussed resuming military action against Iran with his aides, causing crude oil futures and US long-term yields to surge.

This triggered a sharp increase in dollar buying, pushing the pair up from 157.41 yen to 158.09 yen, a roughly 68 sen gain for the dollar. However, concerns over potential currency intervention by the Japanese government and the Bank of Japan limited the yen's depreciation.

The US 10-year Treasury yield reached its highest level in 24 years at around 5.34%, further supporting dollar buying. In contrast, the euro continued to decline against the dollar, closing at $1.1244, a four-session low.