Dollar Tumbles Against Yen in Joint Intervention

The US dollar has taken a hit against the yen after a joint intervention by Japan and the Trump administration. The dollar, which had reached a 40-year high of 164 yen in July, is now sitting at 156.80 yen as of Monday morning.

The intervention came in the form of the Treasury Department selling off euros for yen on Friday, with Goldman Sachs and Morgan Stanley facilitating the sales. Japanese Finance Minister Satsuki Katayama confirmed that Japan also purchased yen to push back against 'excessive volatility' observed in recent months.

Treasury Secretary Scott Bessent wrote on X that the joint intervention was successful in countering disorderly yen movements, and that the US would be prepared to participate in further joint intervention if necessary. The Foreign and International Monetary Authorities (FIMA) Repo Facility has also been touted as an important backstop for countries facing extreme currency swings.