Yen Holds Gains After Joint Intervention, Eyes Further Appreciation

The yen continued to hold its gains on Tuesday, August 4, after last week's joint intervention by Tokyo and Washington to shore up the currency. The Japanese currency had surged as much as 5% over the last three trading sessions.

Tomo Kinoshita, global market strategist for Japan at Invesco, expects concerns about further intervention by Japanese and US authorities to constrain downside pressure on the yen in the near term. He believes that the yen is likely to appreciate against the US dollar towards the end of this year.

The yen was down 0.1% at 157.35 per US dollar, having touched a three-month high of 155.20 in the previous session. It remained well above its 40-year low. Against the euro, the yen held near a more than eight-month top and last stood at 181.19.