Japan and US Coordinate Joint Yen Intervention
Japan and the US coordinated an intervention in foreign exchange markets to support the yen after it fell to its weakest level in four decades.
The Japanese Ministry of Finance and the US Treasury confirmed that they jointly bought yen in foreign exchange markets late last week, with Tokyo spending close to $59 billion. The intervention lifted the yen to its strongest level in almost three months, from around ¥164 against the US dollar to approximately ¥155.
Japan's Finance Minister Satsuki Katayama said the coordinated action aimed to counter excessive volatility in currency markets, and that they would not hesitate to conduct further joint intervention if needed. The Bank of Japan has indicated another interest rate increase remains under consideration, with traders increasing expectations for a rise as early as September.