The dollar-yen pair climbed to 160.27 in New York trading on September 1 after U.S. Central Command announced strikes against Iran's Islamic Revolutionary Guard Corps, reversing an earlier slide to 159.90 when key U.S. indicators missed forecasts. Safe-haven dollar buying strengthened as crude oil futures surged, with WTI reaching the $87 range, and the U.S. 10-year Treasury yield held near 4.79%, its highest since January of the prior year, amplifying inflation concerns and rate-supported dollar demand. President Donald Trump warned that further Iranian escalation would leave Iran completely eradicated, adding pressure to energy prices and long-term yields. The New York advance extended Tokyo's earlier break above 160, where the pair had reached 160.025 after Japan's 10-year yield rose above 3.00% for the first time in roughly 30 years on fiscal-expansion fears linked to record fiscal 2027 budget requests under the Ishiba administration. August ISM Manufacturing PMI printed at 54.6, July JOLTS job openings at 7.271 million and July construction spending at -0.5% all fell short of expectations, while the final August manufacturing PMI was revised up to 53.9. Euro-dollar retreated to $1.1585 after touching $1.1608, euro-yen rose to 185.72, and $1.1570 was watched as near-term euro support. Market focus turned to Middle East developments and U.S. rate trends, with resistance cited in the 160-yen area, dip-buying interest near 159, and lingering caution over Japanese intervention.