Yen Holds Gains as Dollar Struggles Amid Intervention and Oil Price Decline

The Japanese yen maintained its gains after last week's joint intervention by Tokyo and Washington. The currency had surged as much as 5% over the last three trading sessions, with Japan confirming coordinated yen-buying intervention on Friday with the United States in a rare move.

Speculators are wary of rebuilding bearish positions, which supports the currency. Tomo Kinoshita, global market strategist for Japan at Invesco, said 'I expect concerns about the possibility of further intervention by Japanese and U.S. authorities (to) constrain downside pressure on the yen in the near term.'

The dollar is nursing losses following the yen-buying intervention and falling oil prices. Against the greenback, the euro was little changed at $1.1511, having hit a 1-1/2-month peak of $1.1559 in the previous session.