Dollar Tumbles as U.S.-Japan Joint Intervention Triggers Largest Weekly Drop of the Year

The U.S.-Japan joint intervention triggered the dollar's largest weekly drop of the year. The U.S. Dollar Index closed at 99.788, marking a decline of 1.69% for the week.

This was the sharpest single-week sell-off since late January. The dollar's weakness is evident on both the monthly and weekly charts, with a long upper shadow and bearish candlestick body indicating relentless retreat by bulls.

The Federal Reserve's interest rate decision stripped dollar bulls of their last psychological support. Japan's foreign exchange intervention was the first in months and delivered a heavy blow to USD/JPY, making it the most volatile currency pair among G10 currencies.