Dollar Recovers as Joint Tokyo-Washington Yen Intervention Holds Gains

The US dollar index rebounded on Tuesday to reach its highest level in a month and a half, recovering from its losses incurred after intervention to buy the yen. The joint effort by Tokyo and Washington last week had led to significant gains for the yen, but it remained above its 40-year low of 163.99 touched in July.

The yen was down by just 0.2% at 157.55 per dollar on Tuesday, having hit a three-month high of 155.20 in the previous session. The euro held steady against the yen near its highest level in over eight months, while the British pound remained strong at 211.60 yen.

The Chinese yuan showed stability against the dollar due to the strength of Chinese exports. In contrast, the Australian dollar rose by 0.3% to $0.7019, but the New Zealand dollar fell by 0.1% to $0.5867.