On Friday, a report on American jobs showed a considerable slowdown in hiring, prompting a sell-off in U.S. markets.
The Fed is expected to start cutting rates, which are at a more-than-two-decade high, later this year.
The currency’s rise spooked investors, some of whom feared a stronger yen would spell the end of a more-than-yearlong rally in Japanese stocks that had been driven by a weakened currency.
A popular trade among some investors involved borrowing in yen, and then investing it in markets like the U.S.
But as the strength of the dollar this year began to ebb, profits from that trade also started to reverse course.
Organizations:
Federal, Bank of Japan
Locations:
U.S, Japan