Dollar Weakens Against Yen After Joint Market Intervention

The US dollar has weakened sharply against the Japanese yen after market interventions by both countries. The dollar, which had been trading above 163 yen and reaching 40-year highs, dropped to below 160 yen after regulators were suspected of stepping in.

According to Finance Minister Satsuki Katayama, Japan's finance ministry purchased yen in coordination with the US Treasury Department. This move is a rare acknowledgement of market intervention by governments.

Neil Newman, managing director and head of strategy at Astris Advisory Japan, said that the alignment of interests between Japan and America has led to this joint effort to stabilize the exchange rate.