US and Japan Team Up to Support Yen as Oil Prices Plummet
Asian stock markets were mixed on Monday after the US and Japan confirmed they had intervened to prop up the value of the Japanese yen against the US dollar.
The dollar fell to around 155.20 yen, down from near 164 yen last week, following confirmation that the two countries had worked together to curb the US currency's rise to 40-year highs against the yen.
A weak yen can boost the profits of Japanese companies with overseas operations, increasing their value in yen terms, but it also weakens Japan's purchasing power and pushes up costs for imports like oil and other essential goods.
US President Donald Trump had initially praised the dollar's strength as a safe haven during times of uncertainty, but a weaker dollar can help make US exports more competitive.