Asian currencies mixed as yen hovers near 160; oil surge raises risk-off pressures

Asian currencies delivered mixed performances on Monday as the Japanese yen hovered near the critical 160-per-dollar threshold. Heightened geopolitical friction following military strikes between the United States and Iran pushed Brent crude prices higher, creating broader risk-off pressures across regional currency markets. Meanwhile, the U.S. dollar remained resilient on the back of hawkish remarks from Federal Reserve Chair Kevin Warsh, which prompted traders to elevate the implied probability of a September interest rate hike to 57% and pushed two-year Treasury yields up to 4.33%. The yen traded near 159.83 against the greenback after briefly crossing the 160 milestone, reigniting speculation over potential market intervention by Japanese authorities. U.S. Treasury Secretary Scott Bessent downplayed the urgency, characterizing the yen's movements as contained ahead of upcoming discussions with Bank of Japan Governor Kazuo Ueda at the G20 gathering. Concurrently, Chinese economic indicators offered limited momentum, with manufacturing PMI posting a modest contractionary reading of 49.8.