Japan intervenes in currency market as yen surges

Japan conducted its first joint currency intervention with the United States in 15 years, spending $36.58 billion to buy yen and support the currency. The move caused the US dollar to weaken sharply against the yen, and strategists say the yen's surge will likely drive up other Asian currencies. The Bank of Japan (BOJ) noted that global AI demand could have a sticky inflationary effect, which may influence future policy. Japanese firms are seen as having a buffer before a stronger yen significantly impacts their earnings.