Key facts
- The U.S. and Japan jointly intervened to support the Japanese yen.
- The yen surged to 155.20 against the dollar following the intervention.
- Japan reportedly spent $58.97 billion on intervention.
- Oil prices fell sharply amid hopes for a Middle East peace deal.
- U.S. stocks rallied, with the Dow Jones Industrial Average reaching a record high.
- Amazon's market value surpassed $3 trillion for the first time.
The Japanese yen surged against the dollar following coordinated intervention by the U.S. and Japan, marking the first such action since 2011. The yen briefly hit 155.20 against the dollar, moving away from recent 40-year lows. Japan reportedly spent nearly $60 billion, with the U.S. planning to spend between $5 billion and $10 billion.
Concurrently, oil prices fell sharply amid hopes for a Middle East peace deal between the U.S. and Iran. President Donald Trump's remarks fueled these hopes, though Iran's Foreign Ministry spokesman rejected claims of ongoing negotiations. U.S. stocks rallied, with the Dow Jones Industrial Average closing at a record high, buoyed by strong manufacturing data and optimism around earnings. Amazon's market value surpassed $3 trillion for the first time.
U.S. factory activity expanded in July at its fastest pace in over four years. Asian markets made cautious gains, following the global rally, with oil prices holding near recent lows. The dollar was rebuilding strength against the yen after the intervention.
Oil prices rebounded slightly on Tuesday after plunging in the previous session, as concerns remain that Middle Eastern supply is at risk due to the uncertain diplomatic resolution to the U.S.-Iran conflict. Brent futures rose 0.7% to $84.39 a barrel, and WTI crude was 0.7% higher at $80.95. Traffic in the Strait of Hormuz, a key transit point for oil, slowed following reports of vessel attacks.