The decline of the yen has deepened, and half of the gains from the historic Japan-U.S. intervention have almost entirely disappeared.

The yen fell by as much as 0.8% against the dollar, reaching 159.06, the worst performance among the G10 countries, as half of the gains triggered by the historic joint intervention by the U.S. and Japan were reversed. Tuesday was a public holiday in Japan, and traders are concerned that weakened liquidity could set the stage for a new round of intervention. Nevertheless, recent interventions seem unlikely to change the yen's weak position, as it faces many significant adverse factors, such as market concerns that Japan may increase fiscal spending. After the yen fell to nearly 164, a 40-year low against the dollar, Japan and the U.S. launched their first joint yen-buying operation since 1998 at the beginning of this month. This intervention temporarily strengthened the yen to around 155, but the upward momentum soon began to fade.