The Bank of Japan (BoJ) intervened in the foreign-exchange market on Monday to bolster the weakening Japanese yen, which had plunged to a 34-year low of 160 per dollar.

In response to the move, the yen saw a notable recovery, jumping as much as 3% to 154.6 against the dollar following the intervention, before retracing to 156.80 at the time of this writing.

Chart: Dollar-Yen Tumbles After BoJ Intervenes In FX Market

Why Did The BoJ Intervene?

In response to the Japanese yen depreciating by over 10% in less than four months in 2024, Japanese monetary authorities decided on Monday to take actions to...