Dollar Weakens Against Yen After Reported Market Intervention

The U.S. dollar weakened sharply against the Japanese yen on Monday after officials intervened in currency markets, according to the Associated Press.

The AP reported that President Donald Trump and Japan’s finance minister were involved as the yen gained against the dollar. Currency intervention is an unusual step that can quickly reshape trading across global foreign-exchange markets.

For investors and businesses, a weaker dollar can affect the relative cost of imports, overseas travel and goods priced in other currencies. Exchange-rate swings also matter to companies with international sales and to markets watching the policy response in major economies.

The move puts renewed attention on Japan’s currency policy and on whether officials will seek to steady volatile exchange rates in the days ahead.

Source: Associated Press