Dollar Plunges Against Yen After Joint Intervention by US and Japan

The US dollar experienced a sharp decline against the Japanese yen on Monday, following confirmation from President Donald Trump and Japan's finance minister that both countries had intervened in markets to stabilize the exchange rate.

Before last week, the dollar was trading at 163 yen, reaching 40-year highs. However, after regulators were suspected of stepping in, it fell below 160 yen. The dollar dropped further on Monday to nearly 155.20 yen, a significant decline from its early morning price of 156.70 yen.

The joint intervention aimed to stem the yen's long-term weakness against the dollar, which has been a source of frustration for Tokyo. Japan imports a substantial amount of goods, and a weak currency pushes prices higher, exacerbating the problem caused by high oil prices.

Neil Newman, managing director at Astris Advisory Japan, stated that overt acknowledgment of market intervention is rare. Trump confirmed that the US side had helped, saying it was 'a signal of friendship' and 'good for the world economy.' He also mentioned the financial benefits for the US, citing its strong financial position.