The yen hovered near a four-decade low on Tuesday, leaving traders wary of possible intervention by Japanese authorities to bolster the currency. The yen was up 0.1% at 161.93 per dollar, not far from a 162.84 trough hit last week, while against the British pound it fell to its lowest since 2007 at 217.20 before paring some losses. Lee Hardman, senior currency analyst at MUFG, said speculation that Japan could intervene during the U.S. holiday did not materialize, contributing to the yen giving back some recent gains. In the broader market, the dollar wavered as investors pared back expectations of U.S. rate hikes this year following an underwhelming jobs report, with markets now pricing in roughly 29 basis points of Federal Reserve rate hikes by December, down from about 38 bps a week ago. Focus now turns to the minutes of the Federal Open Market Committee's June meeting due on Wednesday for clues about the rate outlook.