The US dollar fell sharply against the Japanese yen on Monday following official confirmation that the United States and Japan had intervened in foreign exchange markets, according to multiple reports from Tokyo. The intervention, announced by US President Donald Trump and Japan’s finance minister, led to a significant drop in the dollar’s value against the yen.
Before the intervention, the dollar was trading above 163 yen, reaching 40-year highs. However, after regulators were believed to have stepped in, the dollar dropped below 160 yen. Early Monday, following the official announcement, the dollar fell about 1 percent to 156.34 yen, marking a major shift in the exchange rate.
Japan’s Nikkei share average also declined on Monday, falling from a one-week high, as the yen rapidly appreciated due to the joint intervention. The move reflects coordinated efforts between the two nations to stabilize financial markets and counter excessive dollar strength.
The intervention highlights the growing influence of central banks in managing global currency fluctuations, with both the US and Japan taking steps to mitigate market volatility. (arabnews.pk)
