The yen rose after Japan issued more warnings about speculative fluctuations, but later regained gains and weakened. The US dollar index rose.

USD/JPY rose 0.1% to 157.37 after Japan's Finance Minister Katsushin Kato said he was “deeply concerned about recent exchange rate movements, including those driven by speculators.”

“Katsushin Kato warned earlier that the authorities would take appropriate action against excessive foreign exchange fluctuations. If they choose to intervene, then a light trading period during the holidays would be a good time for them to depress the USD/JPY exchange rate,” said Shaun Osborne, chief foreign exchange strategist at Scotiabank.

According to DTCC data, options trading volume was 30% of the recent average; Tuesday's trading volume was the lowest this month.

The Bloomberg dollar index rose 0.1%

Analysts at the Canadian Imperial Bank of Commerce wrote in the report that the index has risen more than 2% this month as expectations for the Federal Reserve's suspension of action in the early first quarter of 2025 heats up and Trump's tariff risk rises before taking office on January 20.

“We expect these factors to continue to support the dollar until the end of the month, although seasonal factors at the end of the year would have caused the dollar to sell off,” they said.

EUR/USD fell 0.1% to 1.0390.

AUD/USD fell 0.4% to 0.6227; the minutes of the Bank of Australia's December meeting showed that the central bank is more confident that inflation will continue to reach its target. Earlier, the International Monetary Fund warned that Australia's risk was on the downside.

USD/CAD rose 0.1% to 1.4391.