The Dollar and Euro Are Stable, the Yen Strengthened Against the Backdrop of Intervention

The US dollar and euro remained virtually unchanged on foreign exchange markets on Monday as investors awaited planned diplomatic talks between the US and Iran.

The Dollar Index held steady around 99.80 during European trading. The index fell 1.5% last week after the US Federal Reserve left interest rates unchanged.

The euro also traded stably, around the 1.1380 dollar mark, as markets weighed eurozone inflation risks and declining commodity prices.

The Japanese yen showed the strongest dynamics. The USD/JPY rate fell 0.4% and dropped to 156.70 yen, indicating yen strengthening.

The yen's gains continued after Japan's Finance Minister Kazui Kataiyama and US Treasury Secretary Scott Bessent confirmed that Tokyo and Washington had conducted joint currency intervention to support the yen.

According to Bessent, the US supports Japan's steps to halt the significant depreciation of the yen and is prepared to participate in similar joint interventions in the future if necessary.

This is the first coordinated intervention between the US and Japan in recent decades and followed the yen's depreciation, which surpassed 162 yen per dollar at the end of July — the weakest level in the last 40 years.