US and Japan Intervene in Markets to Weaken Dollar Against Yen

The US dollar has weakened sharply against the Japanese yen after market interventions by both countries. The dollar had been trading above 163 yen, but fell below 160 yen after regulators were suspected of stepping in.

Before last week, the dollar was at a 40-year high against the yen. After the official announcement of the intervention, the dollar fell to around 157 yen during US trading on Monday.

The joint intervention is seen as a rare move, with officials usually keeping such actions private. Japanese Finance Minister Satsuki Katayama confirmed that Japan's finance ministry had purchased yen in coordination with the US Treasury Department.

President Trump said the US helped because of its good relationship with Japan and to provide 'a little bit of help' to a key ally. He also mentioned the financial benefits for the US from the intervention, calling it a 'signal of friendship'. The move may have a short-term impact on the yen's value but is unlikely to address the currency's long-term weakness.