Dollar Hovers Near Lows as Yen Steadies After Joint U.S.-Japan Intervention

The yen has steadied after a historic joint intervention by the U.S. and Japan, while the U.S. dollar hovers near six-week lows against major peers.

The dollar hit its lowest point against the Japanese currency in three months following joint purchases on Friday by Tokyo and Washington, which marked the first yen-buying intervention by U.S. authorities since 1998.

Since then, the dollar has strengthened against the yen, suggesting investors are skeptical about the effectiveness of intervention in the long term.

Central banks are not defending a fixed level, but the market is still challenging their resolve, said Marc Chandler, chief market strategist at Bannockburn Capital Markets.