Dollar-yen steadies near 163.8 as soft U.S. data and lower oil weigh on dollar

Dollar-yen held around 163.8 in trading on the 28th, after touching as high as 163.94-163.95 and slipping back toward 163.65 as weaker-than-expected U.S. data, lower long-term Treasury yields and a sharp fall in oil prices weighed on the dollar. July U.S. consumer confidence fell to 90.8, below expectations, while easing U.S.-Iran tensions and crude's retreat from above $92 to around $77.78 a barrel reduced safe-haven demand for the greenback. The pair later settled near 163.85, up modestly from a prior New York close of 163.75, but failed to decisively clear resistance around the July 23 high of 163.99. Dollar losses were tempered after a weak U.S. 7-year note auction slowed the decline in yields and short-covering emerged near the 163.64 session low. Broader dollar weakness helped lift the euro to 1.1387 after an intraday high of 1.1405, while EUR/JPY rose to about 186.58-186.68. Markets remained cautious ahead of the July 29 Federal Open Market Committee decision and the Bank of Japan meeting, with traders focused on whether the BOJ might deliver an additional rate hike and whether any Fed officials dissent from an expected hold.