Yen Slides to Worst G-10 Performer as Intervention Fades

The Japanese yen has fallen to its lowest level among major currencies in August, reversing gains made after a historic intervention by Japan and the US. The currency weakened by about 0.5% against the dollar this month, according to Bloomberg data, undoing a 3.2% gain in July.

Despite the US nonfarm payrolls report on Friday briefly lifting the yen, it quickly resumed its decline due to thin liquidity during Japan's Obon holiday week.

Average strategists at Nomura Securities note that 'Japan will be in the Obon holiday period which could limit market participation,' and investors are watching for comments from officials regarding intervention policy.