Investing.com - The yen held mostly steady in Asia on Tuesday as investors expect policymakers may attempt to further jawbone the currency weaker after a recent surge against the dollar.
USD/JPY traded at 107.92, down 0.02%, while AUD/USD traded at 0.7591, down 0.05%.
Bank lending in Japan rose 2.0%, compared with a gain of 2.1% expected year-on-year for March. In Australia, the NAB business confidence and business survey for March are due.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 93.97.
Overnight, the dollar dropped to eight-month lows against the other major currencies in subdued trade on Monday, as the Federal Reserve’s persistantly cautious stance on rate hikes continued to weigh on the greenback.
Japan’s Chief Cabinet Secretary Yoshihide Suga said Monday the government was closely monitoring the foreign exchange market and added that the moves in the yen were one-sided and speculative.
But investors stuck to the view that Japan will refrain from any direct action to stem the yen’s gains until at least after this week's G20 meetings in Washington.
Separately, the dollar remained weaker against the yen on the view that the Federal Reserve will stick to a cautious approach on hiking interest rates this year amid concerns over the outlook for the global economy.
Lower interest rates make the dollar less attractive to yield seeking investors.