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The dollar was steady on Monday after data last week showing U.S. inflation remained sticky cast doubts on when the Federal Reserve would start its easing cycle, while the yen remained rooted near the psychologically key 150 per dollar level.
The yen has hovered around 150 level in the last few days, prompting officials to comment on the currency moves and keeping markets on alert to a possible intervention by Japanese authorities.
In early trade on Monday, the yen strengthened 0.20 percent to 149.94 per dollar but remains down 6 percent for the year, while against the euro yen hovered around three-month lows of 161.925.
Ministry of Finance officials “took the first step onto the intervention escalation ladder by warning against rapid moves and threatening action even outside of its time zone,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.
