Japan and US Stage Joint Intervention to Stabilize Yen

Japan and the United States made their first joint foreign exchange intervention in 15 years to stabilize the yen, which had fallen to a 40-year low against the US dollar. The coordinated effort on Friday involved buying yen to stem its decline, with both countries warning of potential future interventions if necessary.

The intervention came after the yen hit a record low of 163.99 against the US dollar on July 23, prompting concerns about Prime Minister Sanae Takaichi's expansionary fiscal policy and how it will be funded.

In other news, Japan's ruling party has decided to leave the decision on cutting the consumption tax on food to its tax policy chief after the proposal faced opposition from fiscal hawks. The tax cut is aimed at easing the impact of inflation.