Yen Intervention Sends Shockwaves Through US Equities

The US and Japan intervened in the foreign exchange market to prop up the yen, causing it to drop from above 163 to around 155 against the dollar.

This move has significant implications for US equities, as many investors had borrowed low-yielding yen to invest in U.S. stocks and Treasuries.

With the yen's sudden strengthening, these loans have become more expensive to repay, prompting some investors to sell part of their equity holdings and reduce exposure.