NewzBANGKOK (AP) — World shares were mixed Monday after the U.S. and Japan confirmed they had acted to prop up the value of the Japanese yen against the U.S. Oil prices fell sharply, meanwhile, after U.S.
President Donald Trump said he would order U.S. forces to refrain from attacks against Iran, claiming a deal to end the fighting in the Middle East was close. Just a day earlier, the president had said he was “losing faith” in the negotiations with Iran, warning that the U.S.
military “will be hitting them very hard.” The dollar dipped to near 155.20 yen after Trump and Japanese officials confirmed they had intervened last week to curb the U.S. currency’s rise to 40-year highs against the yen. Last week it was trading near 164 yen.
By late Monday in Tokyo, a dollar bought 156.68 yen. A weak yen helps to boost the profits of Japanese companies with big operations overseas, increasing their value in yen terms. It also has drawn millions of foreign tourists who have enjoyed their strong purchasing power in Japan.
But a cheap currency also weakens Japan’s purchasing power overall, pushing up costs for the imports of oil and other essential goods. The dollar’s value has surged as it serves as a safe haven for investors in times of uncertainty, such as during war. Trump lauded the dollar’s strength in comments to reporters, but a weaker dollar can help make U.S.
Treasury bought yen through the Federal Reserve Bank of New York, analysts said, to help boost its value. It’s a strong signal, said Stephen Innes of SPI Asset Management. “Washington is no longer merely giving Tokyo permission to defend the yen.
Summary from source