The ICE U.S. dollar index is up 0.1% and the greenback is steady at 162.49 yen after hitting a 40-year high of 162.83 earlier. There is speculation among traders that Japanese authorities could take advantage of U.S. holiday-thinned trade on Friday to intervene against the yen's weakness. Japanese Finance Minister Satsuki Katayama on Tuesday renewed her pledge to address excessive yen volatility. "We will take appropriate action on currencies at any time as needed," Katayama said at a news conference. Japan's efforts to support the yen could have implications for U.S. government borrowing. If Japanese FX policies seek to keep more capital at home, it might lessen Japan's demand for U.S. Treasurys. (patrick.sheridan@wsj.com)