Dollar Slumps Against Yen After Joint Intervention
The US dollar's strength against the yen has been tempered by an intervention in the foreign exchange market, confirmed by President Donald Trump and Japan's finance minister Satsuki Katayama. The dollar had surged to a 40-year high above 163 yen before falling below 160 yen as regulators were suspected of stepping in.
The official announcement of the intervention led to a sharp drop in the exchange rate, with the dollar falling to nearly 155.20 yen on Monday morning. By late afternoon, it had recovered slightly to 157.18 yen.
The yen's prolonged weakness against the dollar has been a source of frustration for Tokyo, as Japan imports most of what it consumes and a weak currency drives up prices. High oil prices have added to the problem, putting pressure on Prime Minister Sanae Takaichi's administration to address the rising cost of living.