Japan and US Unite to Prop Up Yen Amid Global Economic Uncertainty

The Japanese government has intervened in the currency markets to prop up the yen, with the help of the US. The joint effort is one of the most dramatic interventions in global currency markets in decades.

Japan's policymakers are concerned about the yen's weakness, which drives up import prices and household living costs. The US is also worried about a weak yen, as it gives Japanese manufacturers an unfair trade advantage.

The yen has been sliding for months, with a 40-year low of 163.99 reached on July 23. To support the currency, Japanese authorities spent almost $74 billion in late April and have used various tools to slow its decline.