The Japanese Yen weakened to the 150-per-dollar mark on Monday as higher US Treasury yields maintained Dollar support.
The Yen was trading at 149.9 per Dollar at the time of writing after easing to 150.14 on Monday, albeit briefly. This level hasn't been seen since 3rd October when traders assumed the Bank of Japan had intervened.
However, subsequent money market data indicated the Yen's sudden strengthening likely didn't stem from intervention from Japanese authorities, Reuters news agency reports
According to chief currency strategist at Mizuho Securities in Tokyo, Masafumi Yamamoto, a number of investors were betting the Bank of Japan would defend the 150 mark, even though others believed rising US yields would keep driving the greenback upwards.
"Potentially, there are two camps out fighting around 150, so that's why Dollar-Yen doesn't move from here," Yamamoto stated.
Investors are focusing on a series of upcoming events this week, including the European Central Bank meeting, US GDP data and the Fed's preferred inflation gauge.
In addition, US Treasuries are also in focus for investors, with 10-year yields around 4.982% after briefly exceeding 5% last week as Federal Reserve Chair Jerome Powell said the US economy's strength and hot labour markets could result in additional monetary tightening.
The Dollar index – measuring the currency against six peers – rose to 106.23 after increasing 6.7% since mid-July and holding almost steady throughout October
"On paper, it should be a good week for the Dollar. US GDP should come in at over 4%, and the Fed's preferred measure of inflation should still be running hot," according to Chris Turner, ING's global head of markets
"In Europe, PMIs and the ECB bank lending survey should show an economy mired in stagnation, if not recession."
The Euro edged down 0.1% at $1.0586, whilst Sterling held flat at $1.21620.
The European Central Bank's (ECB) upcoming meeting is scheduled for Thursday, and according to a poll carried out by Reuters, although the rate hiking cycle has ended, easing won't get started until at least July next year. Last month, the ECB hiked its key interest rate by 25 basis points. "It is not all bad news for the Euro," Turner added.