The yen recovers 5% after joint intervention by Japan and the U.S.

WHAT HAPPENED

Japan and the U.S. bought yen together to halt its decline. The dollar went from being worth 164 yen to about 156: the Japanese currency recovered nearly 5% in just a few days.

WHY IT MATTERS

A weak yen makes gasoline, food, and imported raw materials more expensive, because Japan needs more yen to pay for each dollar. As it recovers, that pressure eases on households and businesses, although exporters lose part of their advantage.

AND FOR YOUR PORTFOLIO

Global funds and stocks with exposure to Japan may change in dollar value even if their businesses remain the same: currency movement also modifies what an investment is worth. For tourists, Japan becomes a little more expensive than last week.