Framing Analysis
The U.S. dollar remained near a two-week high on Monday while the yen slipped back through the 160-per-dollar level. Federal Reserve Chairman Kevin Warsh's Friday remarks on inflation raised the implied probability of a September rate hike to 57 percent and lifted two-year Treasury yields to 4.33 percent. Treasury Secretary Scott Bessent described yen moves as contained and expressed expectations for Bank of Japan action.