Yen intervention impact fades while Aussie dollar holds steady
The Japanese currency was last at 159.1 per dollar, slightly stronger on the day
Japanese and Australian currencies experienced contrasting movements on Tuesday, Aug 11. The Japanese yen strengthened slightly to 159.1 per US dollar, while the Australian dollar hovered near an eight-week high at US$0.7054. The yen's rise is attributed to the diminishing impact of the rare US-Japan intervention at the end of July, while the Australian dollar remained steady as the Reserve Bank of Australia kept interest rates unchanged at 4.35%.
The intervention aimed to buoy the yen, which had dropped to a 40-year low of 163.99 per dollar following the rare intervention. However, the yen has since lost almost half of those gains. Market analysts suggest that authorities may step back into the market as Japan approaches the Obon holiday period, a time of reduced market participation.
Speculators have reduced bearish yen bets to their lowest level in over 12 years. Meanwhile, the US dollar index remained steady at 99.82, and the euro and British pound were largely unchanged. China's yuan remained near a 3-1/2 year high against the US dollar.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Yen intervention impact fades while Aussie dollar holds steady businesstimes.com.sg
