Asian shares mostly decline as investors weigh intervention impact

Dollar inches to 157.63 yen as euro holds at $1.1511

Asian shares mostly declined Tuesday, despite a rally on Wall Street boosted by easing oil prices, as regional investors weighed the impact of a recent joint U.S.-Japan currency intervention, according to the Associated Press.

Japan’s Nikkei 225 benchmark slipped 0.6% to 63,369.85. The U.S. dollar inched up to 157.63 Japanese yen from 157.18 yen, while the euro cost $1.1511, little changed from $1.1514.

The dollar was trading at 160-yen levels before the intervention, the report said.

Some analysts said the effectiveness of such an intervention remains uncertain because it does not address the fundamental economic reasons behind the currency fluctuations, including inflation, interest rates and the relative strengths of the economies.

“A U.S.-backed operation carries far more signaling weight than Tokyo acting alone, and the pledge of further action will give speculators pause. But any U.S. contribution will probably be constrained by size,” BMI, a unit of Fitch Solutions, said in a report.