The Japanese yen remained weak near the 160 per dollar level on Tuesday, prompting concerns of intervention from Japanese authorities to support the currency. Meanwhile, the US dollar saw a slight increase in the overall market.
Bitcoin experienced losses following a rough day, partly due to outflows from bitcoin exchange-traded funds. The dollar was trading at 159.64 yen, close to the key 160 level that triggered a massive 9.79 trillion yen intervention by Tokyo in April and May.
Traders were cautious about testing the resistance level, as another intervention loomed. The Bank of Japan’s recent policy meeting disappointed investors hoping for a reduction in bond purchases, leading to a decline in the yen.
In the broader market, the dollar was strong ahead of the US Federal Reserve’s preferred inflation measure release. Other currencies like the sterling, Australian dollar, and New Zealand dollar saw minor declines.
Political events, such as the US presidential debate and French elections, were also on investors’ radar. The euro faced pressure amid political turmoil in France, while the dollar remained steady against a basket of currencies.
Cryptocurrencies like bitcoin saw some recovery after a significant fall, with funds moving out of bitcoin cash ETFs. Analysts noted that bitcoin’s momentum was currently downwards, advising caution for investors.
Overall, the market remained cautious amid currency fluctuations and political uncertainties, with the euro and bitcoin facing particular challenges.