Yen Surges Against Dollar as US and Japan Intervene

World stock markets were mixed on Monday as the Japanese yen surged against the US dollar. This comes after the US and Japan confirmed they had intervened to prop up the value of the yen, which was trading near 40-year highs.

The US Treasury bought yen through the Federal Reserve Bank of New York to boost its value, said Stephen Innes of SPI Asset Management. 'Washington is no longer merely giving Tokyo permission to defend the yen. It is prepared to stand on the same side of the trade.'

The dollar's value has surged as it serves as a safe haven for investors in times of uncertainty. However, a weak yen can help Japanese companies with overseas operations and attract tourists.

Oil prices fell sharply after US President Donald Trump said he would order US forces to refrain from attacks against Iran, claiming a deal to end the fighting in the Middle East was close.