The dollar-yen pair rose from 158.47 to 159.18 in New York foreign exchange trading on the 20th, closing just shy of the 159 level. Dollar buying strengthened as U.S. yields climbed, supported by U.S. initial jobless claims of 206,000, below the 210,000 market consensus, a Philadelphia Fed manufacturing index of 47.4 against a 24.8 forecast, and July leading economic indicators rising 0.2% month-over-month versus expectations for 0.1%. The pair opened around 158.60 after profit-taking and position-adjustment dollar buying followed the previous day's announcement that the U.S. Treasury Department would expand its cap on long-term government bond buybacks. With both 30-year and 10-year Treasury yields rising, yen selling held a slight advantage. Treasury Secretary Bessent briefly prompted dollar selling by mentioning the possibility of expanding long-term bond buybacks, but dollar buying resumed after he reaffirmed the strong dollar policy and cited the strength of the U.S. economy. Market participants largely considered the buyback expansion insufficient to fundamentally resolve rising U.S. yields. Higher oil prices, intensified by tensions surrounding Iran and President Trump's plan to strengthen economic sanctions against Iran, added inflationary pressure and further supported yields and the dollar. Despite weaker expectations for early Federal Reserve rate hikes, which limited aggressive dollar buying, the pair remained resilient. Market participants generally expect it to keep trading with 159 in sight unless U.S. long-term yields decline further.