US Dollar Weakens Against Yen After Joint Market Intervention

The US dollar has weakened sharply against the Japanese yen after market interventions by both countries. The dollar, which had been trading above 163 yen and reaching 40-year highs, fell below 160 yen after regulators were suspected of stepping in. This sudden change comes as a result of efforts to raise the value of the yen against the dollar earlier this year, which had little effect.

US President Donald Trump confirmed that Washington helped Tokyo with its financial struggles, stating that 'We have a good relationship with Japan. We're very strong, - very, 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.' He added that the US received 'financial benefit' from the intervention.

Japan's Finance Minister Satsuki Katayama issued a statement confirming the intervention, saying the finance ministry had purchased yen in coordination with the U.S. Treasury Department. The move is rare, with Neil Newman, managing director and head of strategy at Astris Advisory Japan, noting that '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.'