Japan's yen took the spotlight in Asia on Monday, circling the 150-per-dollar level in a tug of war between investors betting on a further rise in dollar yields and those expecting Japanese authorities will intervene in markets.
as Israel bombarded Gaza with air strikes early on Monday, extending a two-week bombardment that began after an Oct. 7 rampage by Islamist group Hamas on southern Israeli communities, and as the United Statese dispatched more military assets to the region.
Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo, said a set of investors are betting the Bank of Japan will defend the 150 level, even as others see rising U.S. yields as a reason to keep pushing the dollar up. Investors are also wary of a further rise in the long end of the U.S. Treasuries curve, driven by widening term premiums on expectations of stronger growth and fiscal slippage.