US and Japan Intervene in Currency Markets to Support Yen

The US dollar weakened sharply against the Japanese yen after the US and Japan confirmed they intervened in markets.

Before last week, the dollar was trading above 163 yen, touching 40-year highs. However, it fell below 160 yen after regulators were suspected of stepping in.

Following the official announcement of intervention, the dollar dropped to nearly 155.20 yen on Monday, a significant decline for the exchange rate.

Tokyo has been frustrated by the prolonged weakness of the yen against the dollar, which has led to higher import prices and pressure on the administration of Japanese Prime Minister Sanae Takaichi to address rising living costs.