Yen Steadies Near 160-Dollar Level After Intervention Fades

The yen has stabilized near the key 160-per-dollar level as the impact of US-Japan intervention fades, while the Australian dollar remains near an eight-week high after the Reserve Bank left interest rates unchanged.

The Japanese currency weakened by 0.9% on Monday, moving further away from its three-month high of 155.20 reached last week after a rare intervention at the end of July.

Masayuki Nakajima, senior strategist at Mizuho, warns that if the dollar breaks decisively above the psychologically important 160 level, concerns about intervention could intensify further.

The Reserve Bank of Australia kept its cash rate at 4.35%, as expected, but warned it may need to raise rates again to combat persistent inflation fueled by surging energy costs.