Dollar Plunges Against Yen After Joint Intervention
The US dollar experienced a significant decline against the Japanese yen on Monday after market interventions by both countries. The dollar, which had been trading above 163 yen and touching 40-year highs before last week, fell below 160 yen following the intervention.
US President Donald Trump confirmed that the US side had intervened in the markets, stating that 'We have a good relationship with Japan. We're very strong, - very, very strong financially, and they are, you know, they have a weakening yen, and they wanted a little bit of help, and we're always there for Japan.'
Japanese Finance Minister Satsuki Katayama also acknowledged the intervention, saying that 'We will not hesitate to conduct further joint intervention.' The intervention is seen as a rare acknowledgment by officials of such actions.
The dollar continued to fall on Monday, reaching nearly 155.20 yen after the official announcement of the intervention. Analysts question whether the intervention has been effective in stemming the yen's decline, citing factors that have contributed to its long-term weakness, including a big gap between interest rates in the US and Japan.