The U.S. dollar experienced a sharp fall against the yen and other major currencies on Thursday, following intervention by Japanese authorities. The move was aimed at strengthening the yen amid ongoing geopolitical tensions that have impacted global markets. Finance Minister Satsuki Katayama hinted at the need for decisive market actions earlier in the day.
Japan’s intervention followed signals from the Finance Ministry about measures to support the weakening yen, which had reached its lowest level against the dollar since July 2024. The dollar’s drop, the largest since December 2024, came as oil prices also retreated from recent peaks.
Central banks worldwide are navigating volatile economic landscapes. The European Central Bank held interest rates steady despite inflation concerns, while the U.S. Federal Reserve and the Bank of England similarly kept rates unchanged. Amid rising diplomatic tensions, U.S.-led initiatives are underway to mitigate the economic impact of the conflict between the U.S. and Iran.
(With inputs from agencies.)
