The dollar traded in the lower 162 yen range as of 3 p.m., extending its gains from late New York trading last Friday. Dollar buying triggered by heightened tensions in the Middle East ran its course in the morning, but a Reuters report that the government does not currently envisage changing the basic portfolio of the Government Pension Investment Fund reignited dollar buying and yen selling, briefly lifting the pair to 162.35 yen and almost recovering the levels seen before Finance Minister Katayama's remarks last Friday. The market is not overly concerned about the Middle East situation, with attention focused more on inflation trends and the outlook for U.S. rate hikes, and this week's U.S. price data and Federal Reserve Chair Powell's congressional testimony are keenly awaited.