Yen's Upper Range Limits Caution Over Potential Intervention

The Japanese yen traded in the upper 159 range against the US dollar on Monday, October 31st, in the New York foreign exchange market. As of 8:40 a.m. ET, the dollar stood at 159.76-86 yen, down 0.16 yen from the previous Friday's close.

The euro traded at $1.1587-97 and 185.24-34 yen. The yen showed little directional conviction throughout trading in both Tokyo and New York.

Initially, dollar buying and yen selling led as the previous Friday's speech by Federal Reserve Chair Jerome Powell fueled expectations of an earlier US rate hike. Reports that US forces had struck Iranian military facilities further triggered 'safe-haven dollar buying.'

However, position-adjustment dollar selling and yen buying subsequently emerged, with the yen recovering modestly in New York trading.