The euro traded around $1.1660–70 in London on the 25th, little changed from the previous day, as easing Middle East concerns and stronger-than-expected German business sentiment offset early euro selling. A New York Times report said the U.S. State Department was preparing to return diplomats evacuated before and after hostilities with Iran to embassies across the region, reducing expectations of renewed escalation. Lower crude oil futures also supported euro buying and dollar selling. Germany's Ifo Institute reported that its August business climate index rose more than expected, easing concerns about weakness in Europe's largest economy and potentially supporting views on European Central Bank monetary policy. The euro's recovery was capped by profit-taking and selling in the upper $1.16 range after a gradual climb since late July. The pound was broadly flat at $1.3630–40, while the yen weakened modestly in London to ¥159.20–30 per dollar and ¥185.80–90 per euro. In Tokyo, the dollar rose to ¥159.44–45 and the euro to ¥185.88–92 as safe-haven dollar demand, importer-related yen selling and concerns over Japan's fiscal deterioration weighed on the currency. Yen buying later emerged after markets judged U.S. Treasury Department sanctions announced on the 24th to be within expectations. Traders remain alert to possible currency intervention by the government and the Bank of Japan, particularly as the yen approaches the upper ¥159 to ¥160 range.