Forex
US, Japan Intervene in Markets to Support Yen
The U.S. and Japan intervened in foreign exchange markets to support the yen, which had weakened against the dollar due to a large gap between interest rates in the two countries.
The intervention came after the dollar traded above 163 yen, reaching 40-year highs, but fell below 160 yen after regulators were suspected of stepping in.
U.S. President Donald Trump and Japan's finance minister confirmed that both sides had intervened, with Trump saying it was a 'signal of friendship' and a 'low-cost' way for Washington to pay a favor to a key U.S. ally.
The Bank of Japan has kept its interest rates near zero, while the Federal Reserve has maintained a rate of 3.5-3.75%, contributing to the yen's weakness.