The U.S. dollar drops sharply against the Japanese yen after suspected intervention activity, according to reports. One outlet says that before late last week the dollar traded above 163 yen and reached a 40-year high, but it then falls below 160 yen after markets suspect regulators stepped in. Another outlet links the move to an intervention involving Japan and the Trump administration, saying the dollar falls after the U.S. Treasury’s actions.
The second report states that, following intervention, the dollar is about 156.80 yen as of Monday morning, after having peaked around 164 yen in July. It also attributes part of the pressure to the U.S. Treasury decision to sell euros for yen, which can affect currency balances and exchange rates.
While the accounts differ in details on the exact timing and the characterization of the intervention, both describe a similar pattern: the dollar weakens noticeably versus the yen following intervention-related activity, moving away from recent multi-decade highs.
