US and Japan Intervene in Currency Market, Weaken Dollar

The US dollar plummeted against the Japanese yen after a rare joint intervention by both countries' authorities. The dollar had been trading at a 40-year high, above 163 yen, but fell below 160 yen after regulators were suspected of stepping in to stabilize the market.

US President Donald Trump confirmed that the US side had helped Japan, citing their 'good relationship' and saying it was a 'signal of friendship.' Japanese Finance Minister Satsuki Katayama also acknowledged the intervention, stating they would not hesitate to conduct further joint intervention.

The intervention is seen as a rare alignment of interests between the two countries, with a weaker dollar making US-made goods more competitive in Japan. However, experts warn that the factors contributing to the yen's long-term weakness remain, including high oil prices and Japan's significant energy-import burden.