U.S. and Japan prop up weak yen with first joint market intervention in 15 years

The U.S. dollar weakened sharply Monday against the Japanese yen after U.S.

TOKYO — The U.S. dollar weakened sharply Monday against the Japanese yen after U.S. President Donald Trump and Japan’s finance minister confirmed both sides had intervened in markets.

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.

Early Monday, after the official announcement of the intervention, the dollar dropped about 1% to 156.34 yen. That’s a big change for the exchange rate.

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.

Efforts earlier this year to raise the value of the yen against the dollar did little to budge the exchange rate.