Yen Rises on US-Japan Intervention, Oil Prices Plummet
Asian stocks were mixed on Monday after the U.S. and Japan confirmed intervention to prop up the value of the yen against the dollar, causing it to rise to its highest level since late last year.
The yen jumped as high as 155.20 against the dollar after President Donald Trump and Japanese officials confirmed they had intervened last week to curb the U.S. currency's rise to 40-year highs against the yen.
A weak yen benefits Japanese companies with large overseas operations, increasing their value in yen terms, but it also weakens Japan's purchasing power overall, pushing up costs for imports of oil and other goods needed to run its economy.
Oil prices fell sharply after Trump said he would order U.S. forces to refrain from attacks against Iran, claiming a deal to end the fighting in the Middle East was close.