Federal Reserve decision combined with the yen's rebound leads to further decline of the dollar.

The joint intervention by the US and Japan supported the yen, and the dollar continued its decline on Monday due to the effects of a dollar sell-off triggered by last week's Federal Reserve meeting. The Bloomberg Dollar Spot Index briefly fell to a one-month low, down 0.5% against G-10 currencies. However, as of 11:20 a.m. London time, the index had recouped much of its losses, narrowing the decline to 0.1%. Meanwhile, after the US and Japan's coordinated intervention, the yen rebounded from a 40-year low. US Treasury Secretary Scott Bessenet stated that the US would not hesitate to intervene in the market again if necessary, confirming that Japan has a strong partner in curbing excessive depreciation of the yen. The dollar fell 0.3% against the yen. However, the root of this round of dollar decline can be traced back to last week. At that time, the Federal Reserve decided to keep interest rates unchanged, leading the market to question the determination of newly appointed Chair Kevin Warsh to curb inflation. The dollar index fell a cumulative 1.3% last week. ING forex strategist Francesco Pesole commented, It all started with that Federal Reserve meeting. At that time, the market was broadly bullish on the dollar. If we look at the positioning indicators, we can see that short-term investors were betting heavily on a dollar rise.