US Dollar Plunges Against Yen After Joint Market Intervention
The US dollar has weakened sharply against the Japanese yen after market interventions by both countries. According to Associated Press, the dollar fell below 160 yen and stayed there last week, prompting speculation that regulators were stepping in to stem its decline.
On Sunday, US President Donald Trump confirmed that the US had intervened, saying 'We have a good relationship with Japan. We're very strong, financially, and they are, you know, they have a weakening yen, and they wanted a little bit of help, and we're always there for Japan.'
The joint intervention appears to be having a more durable impact than earlier cases this year, but the factors that contributed to the yen's long-term weakness remain. Analysts say a big gap between interest rates in the US and Japan has led investors to sell yen and buy dollars.
Neil Newman, managing director at Astris Advisory Japan, said 'It's very rare that the Americans will work with the Japanese on this, but there is an alignment of interests here basically between Japan and America.'