Japan and US Conduct Rare Joint Intervention to Boost Yen
The Japanese yen has seen a temporary boost after a coordinated intervention by Japan and the US to prop up the currency. The move, which is extremely rare outside of financial crises or major disasters, was aimed at countering 'excessive volatility and disorderly movements' in the market.
Japanese Finance Minister Satsuki Katayama confirmed that Japan conducted a coordinated yen-buying intervention with the US Department of Treasury on Friday. The intervention involved Japan selling almost $59 billion to buy yen when it intervened in New York markets on Thursday, before the joint move.
The yen has been under sustained pressure this year, weakening to around 164 per dollar in late July, a 40-year low. Experts warn that reversing the yen's long-term downward trajectory will require broader fiscal and monetary policy adjustments.