Dollar Weakens Sharply Against Yen After US-Japan 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 at 40-year highs, fell to nearly 155.20 yen on Monday after regulators were suspected of stepping in.

The intervention was confirmed by US President Donald Trump and Japan's finance minister Satsuki Katayama, who said the finance ministry had purchased yen in coordination with the U.S. Treasury Department.

Trump stated that the US helped to support the yen because 'We have a good relationship with Japan... They have a weakening yen, and they wanted a little bit of help, and we're always there for Japan.'

The move is seen as a 'signal of friendship' by Trump, but analysts question whether it will be effective in reversing the long-term trend of the yen's weakness.