Yen Surges as Japan and US Intervene in Currency Markets

Japan's financial markets took a hit after the country and the US intervened in currency markets to buy yen, sending it to a four-week high. The Nikkei 225 dropped 2.2% as Toyota slid 5.3% due to the strengthening yen, which reached as much as 155.20 per dollar.

The move is significant for exporters like Japan's market, which relies heavily on global sales of cars, electronics, and machinery. A strong yen can make these exports less competitive in foreign markets, leading to lower profits.

Japan's finance ministry warned that it 'will not hesitate to take further action' if necessary, signaling a willingness to cap the yen's weakness after it approached a 40-year low last month.