The U.S. dollar dropped to 156.80 yen on Monday morning, falling from a 40-year high of 164 yen reached in July. Driving the news: The decline comes after the Trump administration, in partnership with Japanese authorities, intervened to support the yen and counteract excessive currency volatility. The U.S. Treasury Department sold euros for yen on Friday, coordinated by the Federal Reserve Bank of New York and conducted through Goldman Sachs and Morgan Stanley. What they’re saying: Japanese Finance Minister Satsuki Katayama confirmed Japan also purchased yen to address rapid currency swings. Treasury Secretary Scott Bessent emphasized ongoing communication with Japan’s Ministry of Finance and Bank of Japan, and signaled readiness for further joint intervention.