Yen Steadies on Intervention, Dollar Stalls Near Six-Week Low

The Japanese yen steadied on Wednesday after recent intervention efforts from Washington and Tokyo. The currency was slightly firmer at 157.61 per U.S. dollar, up from Monday's high of 155.20. Treasury Secretary Scott Bessent said the U.S. will do 'whatever it takes' to support Japan's efforts to stabilise the yen.

Markets remain skeptical about the long-term effects of the interventions, according to Vincent Chung, co-portfolio manager for diversified income bond strategy at T. Rowe Price. He stated that intervention may slow the pace of further yen depreciation, rather than lead to a lasting reversal.

The U.S. dollar index was little changed at 99.85 on Wednesday, struggling to find direction after hitting a six-week low on Monday. Oil prices extended their falls, with Brent crude futures down 0.5 per cent to a three-week low, as signs of a possible diplomatic off-ramp to the Iran conflict eased fears of supply disruptions.

The odds of a Federal Reserve interest rate hike in September have receded to a 56.9 per cent chance from 67.2 per cent a day ago, according to CME FedWatch.