US and Japan Intervene to Strengthen 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 before further intervention led to a drop to nearly 155.20 yen.

Japan's prolonged weakness against the dollar has been a source of frustration for Tokyo, as it imports most of what it consumes, and a weak currency pushes prices higher. The country's administration is under pressure to address rising living costs.

A joint intervention was needed to stem the yen's decline. The US side confirmed that they had lent a hand in purchasing yen, with Japanese Finance Minister Satsuki Katayama stating that the finance ministry had coordinated the purchase with the U.S. Treasury Department.