Japan and US Intervene in Currency Market to Prop Up Yen

Japan and the United States conducted their first coordinated intervention in 15 years to prop up the Japanese yen, but experts warn it's only a short-term fix. The move aimed to counter excessive volatility and disorderly movements, with Japan confirming the intervention on Monday.

The intervention was triggered by the yen's rapid depreciation this year, which has weakened the currency to around 164 per dollar in late July - a 40-year low. Data from the Bank of Japan indicates that Tokyo may have sold almost $59 billion to buy yen when it intervened in New York markets on Thursday.

Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said the coordinated intervention reflects growing concerns over the yen's rapid depreciation. However, she added that currency intervention could only provide temporary relief without addressing the underlying causes.