The Japanese yen has rebounded from its 40-year low against the U.S. dollar at the start of the trading week, after Tokyo and Washington intervened to prop up the currency.
A series of headwinds—interest rates, the war in Iran, fiscal policy, and inflation—prompted the United States and Japan to conduct the first joint yen-buying operation since the Asian Financial Crisis in 1998.
The Japanese yen has now strengthened by almost 5 percent against the greenback over the past week. U.S. officials say they are prepared to further assist their Asian ally in global forex markets.
Here’s what to know about the U.S.–Japan coordinated intervention….