Japan and the U.S. confirmed coordinated yen-buying intervention last week, driving a 5% surge before a modest pullback.
The yen fell 0.3% to 157.72 per dollar on Tuesday, paring gains after a three-month high of 155.20 but remaining above July’s 40-year low of 163.99. The currency surged as much as 5% over three sessions following Japan’s rare joint intervention with the U.S. to support the yen.
Analysts noted the intervention may provide short-term relief but stressed fundamentals, including Japan’s lower interest rates, must shift for a sustained reversal. The U.S. Treasury reportedly bought yen for euros instead of selling dollars, a move seen as avoiding dollar weakness signals.
Against the euro, the yen slipped 0.5% to 181.68 after hitting a near nine-month high of 179.44 on Monday. Traders remain cautious about rebuilding bearish positions amid intervention risks.