US and Japan Intervene in Currency Markets as Oil Prices Fall
Global stock markets were mixed on Monday as the US and Japan took steps to prop up the value of the Japanese yen against the US dollar. The US Treasury intervened in the currency market by buying yen through the Federal Reserve Bank of New York, analysts said.
The dollar's value has surged in recent weeks due to its status as a safe-haven asset during times of uncertainty, such as war. However, a weaker dollar can make US exports more competitive and help boost the profits of Japanese companies with operations overseas.
Oil prices fell sharply on Monday after US President Donald Trump announced that he would order US forces to refrain from attacking Iran, citing progress in negotiations to end fighting in the Middle East.
The Brent crude oil price dropped 4.7% to $83.92 per barrel, while US benchmark crude lost 5.6% to $79.89 per barrel.