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Yen drifts after intervention whirlwind; Iran optimism dents dollar
['Amanda Cooper', 'Chibuike Oguh', 'Wed', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
By Amanda Cooper and Chibuike OguhNEW YORK/LONDON, Aug 5 (Reuters) - The Japanese yen steadied on Wednesday after a historic intervention, while the dollar hovered near six-week lows against major peers as renewed hopes for an end to the Iran war curbed safe-haven demand.
The yen was slightly stronger on the day at 157.72 per dollar after falling 0.4% on Tuesday.
It had strengthened on Monday to 155.2 per dollar after trading around 164, its weakest in 40 years, just a week earlier.
Since then, it has strengthened against the yen, suggesting that investors are skeptical about how effective intervention can be in the longer run.
"Intervention can help slow the pace of depreciation, but history suggests it rarely changes the longer-term trend unless the underlying fundamentals shift."