US and Japan Coordinate Yen Purchase Amid 40-Year Low

The U.S. and Japan have coordinated a yen purchase in an effort to stabilize the currency, which has reached a 40-year low against the dollar.

The intervention came after Reuters obtained photos of Treasury Secretary Scott Bessent's notebook from a cabinet meeting on July 31, showing a note to 'buy $5 billion to $10 billion in Japanese yen.'

The official confirmation of coordinated intervention led to a rapid decline in the USD/JPY pair, which fell from a high near 164 last week to around 155.

The move has altered the risk-reward ratio for investors who have been betting on a long-term depreciation of the yen, and some are reassessing their positions as a result.