The yen marked two straight days of gains after a series of warnings from government officials that they will intervene in currency markets

Most Asian currencies firmed on Tuesday. The yen crept higher, extending gains from the prior session as more government warnings on currency market intervention helped the yen weather concerns over stretched fiscal spending under Prime Minister Sanae Takaichi, who clocked a landslide victory in recent lower house elections.

Currencies were aided by some weakness in the dollar. But overall gains were limited by caution.

The losses saw the greenback fall back in sight of a near four-year low hit in late-January.

In the absence of new catalysts, we would expect more two-sided USD price actions until further guidance from the next Fed Chair. Ahead of US data this week, FX market has settled with a slightly bearish USD bias again, BofA analysts said in a note.

Broader Asian currencies gained on Tuesday, with the yen’s USD/JPY pair dropping 0.3%.

The yen marked two straight days of gains after a series of warnings from government officials that they will intervene in currency markets.

The warnings helped the yen strengthen past persistent concerns over Tokyo’s massive debt pile– concerns that remained in play after Takaichi’s landslide election victory.

Among other Asian currencies, the yuan’s USD/CNY pair declined 0.2%, with the yuan at its strongest level in more than 2-½ years to the dollar. The yuan was supported chiefly by a series of strong midpoint fixes from Beijing.

Chinese CPI inflation data is also due on Wednesday.

The Australian dollar’s AUD/USD pair shed 0.1%, losing some ground after hawkish comments from the Reserve Bank supported the currency. BofA analysts said they viewed the Aussie’s recent gain as stretched, and that a reversal was close.

The Singapore dollar’s USD/SGD pair was flat even as final gross domestic product data for the fourth quarter showed the economy growing much more than expected.

The won’s USD/KRW pair dropped 0.2%, while the Indian rupee’s USD/INR pair declined 0.1% but remained well above 90 rupees.