The yen held steady near the key level of 160 per dollar on Wednesday, keeping investors on the lookout for more intervention by officials in the foreign-exchange market. Japan’s currency was 0.1% weaker at 159.45 per dollar at 1:31 p.m. in New York. It has depreciated more than 1% in August, unwinding some of the US-Japanese efforts to strengthen the yen at the turn of the month.

Traders remain alert for potential action from Japanese authorities as the yen approaches the psychologically important 160 level. The yen's slide in August has erased gains from late July when intervention was suspected. The currency has been under pressure despite recent coordinated efforts between the US and Japan to support it. The pair has been trading in a narrow range this week as markets await further cues from policymakers.

Any breach above 160 could trigger a response from the Ministry of Finance, according to analysts. The yen's weakness reflects the interest rate differential between the US and Japan, with the Federal Reserve maintaining high rates while the Bank of Japan keeps its policy ultra-loose. This has kept the yen under pressure for much of the year.