Japan and US Coordinate Yen Intervention Amid Dollar Slump

The Japanese government and Bank of Japan conducted a yen-buying intervention for the first time in about three months, according to informed sources. This move came as part of a coordinated effort with U.S. authorities to prevent further weakening of the yen.

During New York trading hours on Thursday night, the dollar briefly plunged by about 5 yen, hitting its lowest level since mid-May, when it slipped below 158 yen. Market players estimate that the intervention was large in scale, at more than 5 trillion yen, based on BOJ data.

When asked to comment on the matter, Finance Minister Satsuki Katayama declined to confirm or deny the intervention, stating only that they are 'working on the matter with a sense of vigilance.'