Dollar Slumps Against Yen After Joint Market Intervention

The US dollar took a sharp hit against the Japanese yen after market interventions from both countries were confirmed.

According to reports, before regulators stepped in, the dollar was trading at over 163 yen, reaching 40-year highs. However, after the official announcement of the intervention, the dollar dropped about 1 percent to 156.34 yen.

The US Treasury Department and Japan's finance ministry have been working together to stabilize the exchange rate. The move follows a joint statement last year that aimed to counter excessive volatility in the Japanese yen.

The yen's prolonged weakness against the dollar has been a source of frustration for Tokyo, as it leads to higher inflation due to increased import costs.