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US dollar weakens sharply against the Japanese yen
AP News • • general
Key Points:
- The U.S. dollar sharply weakened against the Japanese yen following a rare joint market intervention by the U.S. and Japan, with the dollar dropping from above 163 yen to about 156.34 yen.
- The intervention aimed to address the prolonged weakness of the yen, which has been driving inflation in Japan due to its heavy reliance on imports.
- U.S. President Donald Trump described the intervention as a "signal of friendship" and beneficial for the global economy, emphasizing the strong financial relationship between the two countries.
- Japan's Finance Minister Satsuki Katayama confirmed the coordinated purchase of yen with the U.S. Treasury to counter excessive volatility and indicated readiness for further action if needed.
- Market experts noted the rarity of such coordinated intervention, highlighting mutual economic interests in stabilizing the yen and potentially boosting U.S. exports to Japan.
