Tokyo and Washington Unite to Stem Yen's Decline

The Japanese government and the US Federal Reserve have apparently collaborated on an intervention in the currency market to stem the yen's decline. The joint effort follows the yen's recent depreciation to near historic lows, reaching around 164-yen range against the dollar for the first time in nearly 39 years and eight months.

The Bank of Japan has intermittently intervened in the currency market over the past few days, buying yen to support its value. According to sources close to the matter, the US Federal Reserve Bank of New York conducted a sale of euros to buy yen on behalf of the US Treasury Department.

This coordinated intervention is a significant development, as it marks the first joint action by Tokyo and Washington since 2011, when the yen surged following the Great East Japan Earthquake. It also represents the first joint yen-buying action since 1998, when Japan faced a financial crisis.