Yen Holds Intervention Gains Amid Warnings of Temporary Fix

The yen slipped on Tuesday but held onto most of its intervention-driven gains after last week's joint action by Tokyo and Washington to shore up the currency. The yen was down 0.3% at 157.72 per dollar, giving back some of its gains from hitting a three-month high of 155.20 the previous session.

However, it remained well above its 40-year low of 163.99 touched in July. Japan confirmed coordinated yen-buying intervention on Friday with the U.S., a rare move that saw the Japanese currency surge as much as 5% over the last three trading sessions.

MUFG's Lee Hardman said, 'While joint intervention may prove more effective at helping to provide support for the yen in the near-term, we still believe that it can only buy time.'