The Japanese yen and U.S. dollar on display in Yichang, Hubei province, Nov 13, 2023.
The yen was 1% lower on Tuesday at 145.78 per dollar in early trading, after rising for five straight sessions and touching a seven-month high of 141.675 on Monday.
"Sell-offs that manifest themselves through wild swings in the currency markets are sharp and swift, but usually very short lived," said Jamie Cox, managing partner at Harris Financial Group.
"Markets are clearly nervous about the divergent paths central banks are taking, leading to lots of volatility."
The dollar index , which measures the U.S. unit versus six rivals, was flat at 102.87 in early trading after touching a seven-month low of 102.15 on Monday.
Persons:
Jamie Cox, James Athey, undervaluation
Organizations:
U.S, Federal Reserve, Federal, Harris Financial, Traders, Bank of Japan, Marlborough Investment Management
Locations:
Yichang, Hubei province, recessionary, Japan, Switzerland, Tokyo