Dollar Struggles Near Six-Week Lows as Yen Steadies After Intervention

The Japanese yen steadied after historic intervention by Japan and the US on August 3. The dollar, meanwhile, traded near six-week lows against other currencies due to revived hopes of an end to the war in Iran.

U.S. Treasury Secretary Scott Bessent said the US would do 'whatever it takes' to support Japan's efforts to stabilize the yen. This echoes former European Central Bank President Mario Draghi's pledge in 2012 to preserve the euro during the regional debt crisis.

Markets are waiting for fundamental justification before challenging central bank resolve, according to Marc Chandler, chief market strategist at Bannockburn Capital Markets. The US monthly employment report on Friday could provide this justification and shape expectations for near-term Fed policy.