The U.S. and Japan confirmed a rare, coordinated market intervention to buy Japanese yen, sending the dollar sharply lower from above 163 yen last week to nearly 155.20 yen early Monday. The dollar traded around 156.75 yen late Monday Tokyo time after regulators were suspected of stepping in when the dollar slipped below 160 yen. Japanese Finance Minister Satsuki Katayama said the finance ministry purchased yen in coordination with the U.S. Treasury Department and warned, "We will not hesitate to conduct further joint intervention." President Donald Trump confirmed U.S. involvement and called the move a "signal of friendship." Analysts pointed to a wide interest-rate gap between the United States and Japan that had encouraged investors to sell yen for higher-yielding dollar assets, and they said the intervention aims to ease import-driven price pressure in Japan. Neil Newman of Astris Advisory Japan said the action is rare and could also make U.S.-made goods relatively cheaper in yen terms, potentially boosting exports. Markets will watch whether Tokyo and Washington follow up with more interventions or if underlying rate differentials reverse the move.
