Dollar Sinks Against Yen After Trump Administration Intervention

A joint intervention by Japan and the Trump administration has caused the US dollar to sink against the yen. The dollar, which reached a 40-year high of 164 yen in July, is now at 156.80 yen as of Monday morning.

The Treasury Department sold off euros for yen on Friday in an effort to intervene on behalf of Tokyo's deflating currency. The amount of euros used was not disclosed by the Financial Times, which reported the move. Goldman Sachs and Morgan Stanley were involved in the sales.

Japanese Finance Minister Satsuki Katayama confirmed that Japan also purchased yen to combat 'excessive volatility' observed in recent months. Treasury Secretary Scott Bessent stated that the intervention was successful in countering disorderly yen movements.