Dollar-Yen Traded Sideways on Tokyo Markets Amid Intervention Concerns

The dollar-yen pair traded within a narrow range on Tokyo foreign exchange markets on the 18th, with caution over potential currency intervention by Japanese authorities capping gains. The pair consolidated in the 159.60-yen range throughout the day, briefly rising to 159.74 yen due to persistent dollar buying.

However, expectations for higher crude oil prices and US interest rates persisted, limiting selling pressure on the dollar. As a result, the dollar-yen stood at 159.46 yen as of 12:00, roughly in line with the New York close of 159.46 yen.

The US 10-year Treasury yield held firm near 4.73% in after-hours trading, briefly pushing the dollar-yen up to 159.54 yen and refreshing the intraday high. Despite continued dollar buying momentum, upside was limited in the upper 159-yen range due to intervention concerns.

Meanwhile, euro-dollar traded at $1.1580 as of 12:00, roughly in line with the New York close of $1.1580. Euro-yen continued to consolidate, standing at 184.66 yen as of 12:00, roughly 1 sen weaker for the euro compared with the New York close of 184.67 yen.