Yen Continues To Wobble After Intervention Fails To Deliver

The yen wobbled near the crucial 160 level on Tuesday as joint U.S.-Japan intervention failed to deliver lasting support.

The Reserve Bank of Australia kept its key cash rate at 4.35% as expected, but cautioned it might raise rates again due to stubborn inflationary pressures from surging energy costs.

The Aussie was steady at $0.7054 near its strongest level since mid-June after the decision, while speculators slashed their bearish bets on the Japanese yen by the most in over 12 years.

Analysts suspect that speculators will use the opportunity to rebuild their short positions, although the spectre of faster monetary tightening in Japan looms large.