Yen Hovering Near 160 as Geopolitics Drive Oil Higher

The Japanese yen hovered near the closely watched 160-per-dollar level on Tuesday as most other currencies traded in a tight range. The yen's USD/JPY pair was around 159.81, having weakened past 160 in each of the previous two sessions.

Renewed geopolitical tensions pushed oil above $91 per barrel after the U.S. and Iran exchanged direct strikes for the first time in about a month.

Bank of Japan Governor Kazuo Ueda's comments at the G20 offset some of the hawkish momentum created by Federal Reserve Governor Kevin Warsh's Jackson Hole remarks, according to DBS analysts.