Dollar Slumps Against Yen After Official Market Intervention

The US dollar has taken a sharp hit against the Japanese yen after officials from both countries confirmed they intervened in markets. This move comes after the dollar reached a 40-year high of above 163 yen late last week. However, following speculation that regulators had stepped in to slow down the dollar's rise, it fell below 160 yen.

The situation took a more concrete turn on Monday morning when both US President Donald Trump and Japan’s finance minister publicly acknowledged their involvement in the market. The result was an immediate drop of about 1% in the dollar's value against the yen, with the exchange rate dipping to 156.34 yen.