US and Japan Intervene in Currency Market to Support Yen

The US and Japan intervened in the foreign exchange market last week to prop up the Japanese yen, which has been weakening against the dollar. The joint intervention was a first since 2011 and saw Japan sell nearly $60 billion to support the yen, with the US committing to spend between $5 billion and $10 billion.

The timing of the move is being questioned, with some speculating that the Bank of Japan's decision to delay an interest rate hike last week may have contributed to the yen's weakness. The Federal Reserve is also expected to raise interest rates soon, which could impact the currency market.

The intervention has arrested a slide in the yen, which hit 40-year lows last week. The currency has strengthened around 4% against the dollar since Japan's first action on Thursday and briefly hit its best levels since early May on Monday.