Abu dhabi: The yen was pinned near an almost four-decade low on Wednesday as rising oil prices and US Treasury yields hoisted the dollar and left traders on edge about possible Japanese intervention. On Tuesday in New York trade, the yen hit 163.24 per dollar, marking its weakest point since late 1986, and it sat at 163.21 early in the Asia session.

According to Emirates News Agency, the dollar gained broadly overnight, briefly pushing the euro just below $1.14, and it was holding its ground as US forces began an 11th straight night of strikes on Iran. The euro was last at $1.1401, while the Australian dollar clung to the 70 cent level, and the New Zealand dollar sat on support just above its 200-day moving average of $0.5825.

Sterling is also testing support, having fallen through its 200-day moving average to $1.3385, with traders weighing how new UK finance minister John Healey plans to fund spending.