The yen has regained its footing against the world's major currencies after a weak performance on Monday.

This morning the dollar stood at 118.67 yen while the euro remained little changed at 163.85 yen, Reuters reports.

According to the news agency investor are taking a cautious outlook as Tokyo "struggled to extend gains" after a strong Wall Street recovery.

An extended decline of the yen against the carry trade favourites the Australian and New Zealand dollars has been predicted by experts speaking to Bloomberg.

Sue Trinh, RBC Capital Markets currency strategist, predicted the yen could drop to 164.30 against the euro and 119.25 against the dollar today.

"There's likely to be a little bit of yen weakness,'' she told Bloomberg.

Japanese interest rate decisions, the next of which will take place on August 22nd and 23rd, are likely to influence the movement of the yen.

The rate is currently at 0.5 per cent following a quarter per cent rise in February.

A poll conducted by the Nikkei Shimbun last month and reported in the Taipei Times revealed the majority of large Japanese firms do not anticipate a significant impact should rates be increased against.