US dollar weakens sharply against the Japanese yen after market interventions
The US dollar weakened against the Japanese yen following a coordinated market intervention by the US and Japanese governments. Officials stated the move was intended to counter excessive volatility and support the Japanese economy.
Why it matters
Currency interventions by major economies have significant implications for global trade, inflation, and international financial relations.
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TOKYO: The US dollar weakened sharply Monday against the Japanese yen after US President Donald Trump and Japan’s finance minister confirmed both sides had intervened in markets.<br />
Before late last week, the dollar was trading above 163 yen, touching 40-year highs. After regulators were suspected of stepping in, it fell below 160 yen.<br />
Early Monday, after the official announcement of the intervention, the dollar dropped about 1 percent to 156.34 yen. That’s a big change for the exchange rate.<br />
The yen’s prolonged weakness against the dollar has been a source of frustration for Tokyo. Since Japan imports so much of what it consumes, a weak currency pushes prices higher, increasing inflation.<br />
Efforts earlier this year to raise the value of the yen against the dollar did little to budge the exchange rate.<br />
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