Japan and US Intervene Jointly to Support Yen

The Bank of Japan and the US Federal Reserve took joint action to support the yen, intervening for the first time since 1998. The move followed the Bank of Japan's decision to hold its policy rate at 1%, despite pressure on the currency.

The intervention saw the Japanese Ministry of Finance purchase yen in coordination with the US Treasury, aiming to counter excessive volatility and disorderly currency movements.

The operation was significant not just for its rarity but also because it drew on the Federal Reserve's Foreign and International Monetary Authorities Repo Facility, allowing Japan to raise dollars temporarily against its US Treasury holdings.