The yen bought 157.22 per U.S. dollar, not far from its strongest level in two months after several bouts of sharp gains since Thursday

The yen was steady on Tuesday amid lingering market ​nerves after suspected intervention by Tokyo last week sparked sharp gains in recent sessions.

The yen bought 157.22 per U.S. dollar, not far from its strongest level in two months after several bouts of sharp gains since Thursday.

The Australian dollar was little changed at $0.7168 ahead of a policy decision from the Reserve Bank of Australia later in the day, where the central bank is widely expected to raise rates for the third straight meeting to tame inflation.

Investor focus will be on the RBA’s tone and comments to gauge the rate outlook. ​Inflation has been above the RBA’s 2%-3% target range since mid-2025, prompting the central bank to start raising rates from early February.

Inflation fears ​have flared worldwide after the closure of the Strait of Hormuz – a vital waterway for around a fifth of global ⁠oil flows – unleashed an energy shock that has kept crude prices largely above $100 a barrel since the war erupted in late February.

Latest ​Iranian and U.S. strikes in the Gulf on Monday rattled markets, testing a fragile truce and keeping investors edgy and risk appetite subdued.

That lifted the dollar, with the ​euro holding onto its overnight losses. It last fetched $1.1693. The dollar index was steady at 98.452 after gaining 0.3% on Monday.

While we have seen a clear shift toward risk aversion, we are yet to see the kind of outsized moves that would likely accompany a full ​escalation in hostilities, said Nick Twidale, chief market strategist at ATFX Global in Sydney.

Twidale said the situation remains highly fluid and further escalation could push ​oil prices sharply higher and weigh on risk assets. Brent futures was at $113.8 per barrel, down 0.6% in early trading after jumping 6% on Monday.