* Canadian dollar strengthens after retaliatory US tariffs take effect
NEW YORK, Sept 8 - The Japanese yen hovered near a seven-month high on Tuesday, while the dollar steadied against major peers as a renewed rise in oil prices and higher U.S. Treasury yields kept investors cautious.
The yen has gained nearly 5% since last week, driven partly by expectations of faster Bank of Japan policy tightening, the potential repatriation of overseas funds by Japanese investors, the unwinding of carry trades and pressure from Washington.
The currency strengthened to as much as 152.89 per dollar during Asian trading, surpassing levels reached during Japan's July intervention and touching its strongest level since February.
It later gave up some gains and was last up 0.03% at 153.81 per dollar.