Yen Under Pressure as Global Central Banks Turn Hawkish

The Japanese yen came under pressure on Tuesday as investors bet that policymakers in Japan would struggle to keep up with a hawkish turn by global central banks.

The US dollar gained ground against the yen, which traded at 157.33 early in the day, while broader financial markets were buoyed by falling oil prices.

Other currency pairs remained mostly steady, but cryptocurrencies saw significant gains, with Bitcoin reaching an eight-month high above $87,000.

Analysts pointed out that Japan's interest rates are at a wide gap with major peers, leaving the country struggling to compete.