The forex market has been shocked by a major surge in the yen, Since July a popular investment strategy known as the carry trade has begun to unwind, driving a decline in stocks and fuelling further financial turmoil.

Yet the dollar rose 0.1% against the yen on Tuesday to 147.34, a second straight rise, in a sign that markets appear to be over the worst of the recent turbulence.

The dollar index steadied 103.13 as investors anticipate for data, with the euro steadied at $1.0929.

On Tuesday, the dollar increased by 0.1% to 147.34 yen, marking its second consecutive rise. This suggests that the markets might be moving past the worst of the recent volatility.

In July, the yen fell to its lowest level in 38 years as investors engaged in the carry trade. This strategy involves borrowing yen at low interest rates in Japan and then exchanging it for other currencies to invest in assets with higher yields abroad.

Several factors, including an unexpected rate increase by the Bank of Japan and anticipated U.S. rate cuts driven by a weakening labor market, have led to a reversal of the carry trade. As a result, the yen has appreciated by approximately 8% since mid-July.

Government sources told Reuters that Japan's parliament plans to hold a special session on Aug. 23 to discuss the central bank's decision last month to raise interest rates.

Sterling added 0.18% at $1.2789, Following the release of data indicating that the UK's unemployment rate dropped to 4.2% in June from 4.4% in May, contrary to economists' predictions of a small increase, there was a decrease in job vacancies and a slowdown in wage growth.