Dollar Recovers as Yen Maintains Gains After Joint Intervention

The US dollar index recovered from its lowest level in over a month and a half on Tuesday, bouncing back from losses incurred after intervention to buy the yen. The joint effort by Tokyo and Washington last week has had lasting effects, with the yen maintaining most of its gains.

As of Asian trading hours, the yen was down just 0.2% at 157.55 per dollar, having reached a three-month high of 155.20 in the previous session. However, it remains well above its 40-year low of 163.99 touched in July.

The euro held steady against the yen near its highest level in over eight months at 181.19 yen, while the British pound stood at 211.60 yen. The Australian dollar rose by 0.3% to $0.7019, but the New Zealand dollar fell by 0.1% to $0.5867.

The Chinese yuan remained largely stable against the dollar, supported by the strength of Chinese exports.