Published On 7/7/2026
The yen is hovering near its lowest levels in nearly four decades today, Tuesday, which kept traders cautious about the possibility of Japanese authorities intervening to support the currency, while the dollar stabilized after the recent losses it suffered.
- The yen rose 0.2% to 161.75 against the dollar, recovering part of its losses incurred earlier in the session, but it remained close to the low level of 162.84 yen that it recorded last week.
- The Japanese currency fell against the British pound to its lowest level since 2007 at 217.20 yen, before recovering some of its losses.
- The euro recorded 184.99 yen in recent trading, after rising 0.5% in the previous session.
Lee Hardman, chief currency analyst at MUFG, said: “There was speculation at the end of last week about the possibility of Japan intervening again to support the yen during the American holiday in light of the decline in liquidity, but the failure to take any action contributed to dissipating some of the yen’s recent gains.”
In broader markets, the dollar fluctuated as investors continued to lower their expectations about raising US interest rates this year, following the release of a jobs report that was much weaker than expected.
- The euro fell 0.06% to $1.1434.
- The British pound rose to its highest level in more than two weeks at $1.34005 before retreating slightly.
- The Australian dollar fell 0.26% to US$0.6938.
- The price of the New Zealand dollar did not change much, recording 0.5700 US dollars.
The dollar index – which measures the performance of the US currency against a group of currencies – settled at 100.90 points.
Investors currently expect interest rate increases from the Federal Reserve (US central bank) of about 29 basis points by next December, down from about 38 basis points a week ago.
Attention is now turning to the minutes of the Federal Open Market Committee meeting last June, scheduled to be released tomorrow, Wednesday, in anticipation of any indications regarding the path of interest rates.
