Japanese Yen Holds Steady Above 159 as Traders Await US Inflation Report

The Japanese yen stabilized around the 159 level against the dollar on Tuesday, with the pair erasing almost all of the sharp drop that followed suspected currency intervention last week. Over the past few sessions, the dollar regained ground as U.S. yields edged higher and risk sentiment remained fragile.

Pressure on the yen has been exacerbated by elevated oil prices, which boost Japan’s import bill, and by the firm U.S. dollar. Markets are now squarely focused on the upcoming American inflation report, which could shape expectations for Federal Reserve policy and near-term dollar direction.