Asian Currencies Mixed as Dollar Holds Two-Month High, RBA Decision Looms

Asian currencies were mixed on Tuesday as markets remained alert to intervention risks and assessed the Bank of Japan's policy path. The U.S. dollar held near a two-month high, supported by volatile oil prices and a sharp rise in Treasury yields.

The yen weakened toward recent lows, giving back some of Monday's gains after Japan's top currency official Atsushi Mimura warned markets to heed a 'very clear' message from Japan and the U.S. about excessive yen weakness.

The Australian dollar was little changed ahead of the Reserve Bank of Australia's (RBA) policy decision later Tuesday, which is widely expected to raise its cash rate by 25 basis points to 4.60%, its highest level since 2011.