Dollar tumbles vs yen after first US-Japan currency intervention in 15 years
The US dollar slipped against the Japanese yen on 3 August after Washington and Tokyo confirmed they had intervened together in currency markets for the first time in 15 years, a rare joint move to steady the Japanese currency.
The dollar was last down about 1% at 156.34 yen, extending losses that began late last week when traders suspected authorities had entered the market. The greenback had hit 163 yen just days before, its highest level against the Japanese currency in four decades.
US President Donald Trump said the intervention showed support for a close ally, while Japanese Finance Minister Satsuki Katayama confirmed Tokyo had bought yen in tandem with the US Treasury. The move highlights growing concern about the yen’s extended slide, which has inflated import costs and stoked inflation in Japan.
Why intervention matters
The major economies usually do not intervene jointly in currency markets, except in times of acute market turmoil. Washington’s support for Japan suggests both governments view the yen’s weakness as a broader risk to financial stability, not merely a domestic issue.
A stronger yen can help ease pressure on Japanese households by lowering the price of imported food, energy and raw materials. A weak yen helps exporters by making Japanese goods cheaper abroad. But the economy, which relies heavily on imported fuel and commodities, is increasingly feeling the impact, with consumers facing higher prices.
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