Japan and United States intervene to prop up weakening yen

Japan and the United States have executed a coordinated currency market intervention to support the Japanese yen after it dropped to a 40-year low against the US dollar. Japanese Finance Minister Satsuki Katayama confirmed joint yen purchases aimed at curbing "excessive volatility and disorderly movements."

The prolonged weakness of the currency has driven up import costs for energy and food, intensifying inflation pressures on Japanese households. Financial analysts attribute the yen's slide primarily to the wide interest rate gap between Washington and Tokyo, alongside rising global oil prices.

While the joint operation sparked an immediate rally, observers caution that its long-term impact remains uncertain unless underlying monetary policies adjust. Officials in Tokyo stated they remain ready to take further measures if market instability persists.

Sources: Expresso das Ilhas, FAZ, NOS, ORF, Seznam Zprávy.