Dollar Plunges Against Yen After Joint Market Intervention

The US dollar weakened sharply against the Japanese yen after market interventions from both countries.

Before last week, the dollar was trading above 163 yen, hitting 40-year highs. However, after regulators were suspected of stepping in, it fell below 160 yen.

Following a joint announcement by US President Donald Trump and Japanese Finance Minister Satsuki Katayama that both sides had intervened in markets, the dollar dropped to nearly 155.20 yen on Monday morning.

This move is seen as a rare acknowledgment of market intervention, with officials usually staying mum on such actions.

The US has been helping Japan support its currency due to its weakening value against the dollar. Trump stated that the US got 'financial benefit' from the intervention and called it a 'signal of friendship', adding that it's also good for the world economy.