• The USD/JPY pair trades around a fresh high of 161.73 since 1986, recorded on Monday.
• Japanese Finance Minister Shunichi Suzuki noted that there is no change in the government's stance on foreign exchange.
• The US Dollar improves due to higher yields amid heightened expectations of the Fed rate cuts in 2024.

The Japanese Yen (JPY) extends losses on Tuesday, which could be attributed to the improved US Dollar (USD). The USD/JPY pair trades near its fresh low of 161.73 since 1986. However, the verbal intervention by Japanese authorities may limit the downside of the JPY.

Japanese Finance Minister Shunichi Suzuki stated on Tuesday that he is "closely watching FX moves with vigilance." Suzuki refrained from commenting on specific forex levels, noting that there is no change in the government's stance on foreign exchange, according to Reuters.

The US Dollar (USD) halted its three-day losing streak as US Treasury yields rose due to heightened expectations of the Federal Reserve (Fed) reducing interest rates in 2024. Traders await a speech by Federal Reserve Chairman Jerome Powell on Tuesday.