Joint intervention by US and Japanese authorities drives the yen higher, with USD/JPY falling sharply in early European trading.
The Japanese yen surged against the US dollar on Monday after US and Japanese officials confirmed joint intervention to support the currency. The USD/JPY pair fell to near 156.45 during early European trading hours, reversing recent declines.
Market speculation had mounted that Japanese authorities might act again following coordinated efforts last week. The yen’s weakness had prompted concerns over import costs and inflation, leading to increased pressure on policymakers to stabilize the currency.
Traders are now watching for further intervention, with authorities hinting at additional measures if needed. The move underscores growing unease over the yen’s rapid depreciation and its broader economic impact.