US and Japan Intervene in Markets, Weakening Dollar Against Yen

The US dollar has weakened sharply against the Japanese yen after US 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, reaching 40-year highs. However, after regulators were suspected of stepping in, it fell below 160 yen. The latest intervention saw the dollar drop to nearly 155.20 yen on Monday, a significant decline from its earlier rate of 156.70 yen.

The weakening yen has been a source of frustration for Tokyo due to Japan's reliance on imports. A weak currency pushes prices higher, which is particularly concerning given high oil prices and the pressure it puts on the administration of Japanese Prime Minister Sanae Takaichi to address the rising cost of living.