US-Japan Intervention Triggers Yuan Appreciation
On July 30-31, the US and Japan coordinated a rare foreign exchange intervention to prop up the yen. This joint effort, which was confirmed on August 3, involved buying yen and pushed its value from around 164 per dollar to approximately 155 in just a few days.
The last time Washington and Tokyo teamed up like this on forex markets was during the Asian financial crisis in 1998. The intervention's mechanics were somewhat unusual, with the US Treasury acting through the Federal Reserve Bank of New York using euro-yen transactions.
US President Donald Trump framed the move as a gesture of friendship toward Japan, while Finance Minister Katayama struck a more tactical tone, signaling readiness for further action if the yen came under pressure again.