NEW YORK, Sept 9 (Reuters) - The dollar traded near a seven-month low against the yen on Wednesday as oil prices settled above $100 a barrel amid an escalating conflict in the Middle East, while investors positioned for central bank meetings next week.
The U.S. currency has come under pressure largely due to the yen's sharp gains over the past week and shifting expectations ahead of policy decisions from the Federal Reserve and Bank of Japan.
The dollar was down 0.23% at 153.65 yen, not far from Tuesday's seven-month low of 152.89.
"The main story here is that the U.S. policy premium is putting a cap on the dollar's advance and we have the yen strengthening with the support of the U.S. Treasury," said Kevin Ford, FX & Macro strategist at Convera.
"I think there's a momentary disconnect between rate expectations and oil, which provided support in terms of trade back in March for the U.S. dollar."