Dollar-yen closed at 157.36 in New York on the 21st, up 48 sen from the previous New York close and broadly consistent with the newer 157.30–40 settlement range, as expectations for an accelerated pace of Bank of Japan rate increases receded. The pair traded between 156.58 and 157.53 during holiday-thinned Asian, European and U.S. trading. Early dollar buying reflected expectations for a Federal Open Market Committee rate increase, while later hopes for U.S.-Iran diplomacy pushed crude oil prices and U.S. long-term yields lower without reversing the yen’s decline. Intervention concerns, including a Bank of Japan rate check on the 18th and a reported previous-weekend check, limited further yen losses. EUR/USD settled around $1.1460–70 after reaching $1.1496, while EUR/JPY ended around 180.40–50; German state election results added political pressure to the euro.