In New York trading at the start of the week, the yen moved little in the upper ¥159 range. Concerns that the government and Bank of Japan could intervene supported the yen, and there was no significant movement.
On Monday the 31st, the yen traded in a range of ¥159.76 to ¥159.86 per dollar in New York, while the euro traded at around ¥185 per euro. As of a report at 8:40 a.m., the yen was stronger against the dollar than at the previous week's close.
The market lacked clear direction from Tokyo through New York. Expectations of early US interest-rate hikes, against the backdrop of a speech by the US Federal Reserve chair, and reports of worsening conditions in the Middle East were seen as factors prompting dollar buying. Meanwhile, concerns about intervention by Japan and the US were cited as a factor limiting the yen's decline.
Thereafter, position adjustments prompted dollar selling and yen buying, and the yen staged a modest rebound in New York. Market participants believe that concerns about intervention by the government and Bank of Japan remain firmly entrenched.
Some in the market say that concerns about intervention are supporting the yen at levels just below ¥160 to the dollar. US monetary policy and rising tensions in the Middle East are supporting the dollar, while the yen has remained within a limited range.