US and Japan Intervene in Currency Markets

The US dollar weakened sharply against the Japanese yen after U.S. President Donald Trump and Japan's finance minister confirmed that both countries had intervened in markets.

Before last week, the dollar was trading above 163 yen, touching 40-year highs. However, after regulators were suspected of stepping in, it fell below 160 yen. On Monday morning, after the official announcement of the intervention, the dollar dropped to nearly 155.20 yen, a significant decline from its early Eastern time trade at 156.70 yen.

The prolonged weakness of the yen against the dollar has been a source of frustration for Tokyo, as it leads to higher prices due to Japan's reliance on imports. The administration of Japanese Prime Minister Sanae Takaichi is under pressure to address the rising cost of living.