US and Japan Intervene to Support Yen for First Time in Nearly Three Decades
The US and Japan have jointly intervened in currency markets to support the Japanese yen for the first time in nearly 30 years. The move comes after the yen reached its weakest level since 1986, sliding to 163.24 per dollar last month. Higher US interest rates, rising oil prices, and persistent capital outflows weighed heavily on the currency.
The Federal Reserve Bank of New York took the unusual step of selling euros to buy yen on behalf of the US Treasury through Goldman Sachs and Morgan Stanley. This transaction was reportedly carried out on Friday.
Analysts estimate that Japan's intervention may have totalled around 8.45 trillion yen. While Tokyo's involvement remains unclear, analysts speculate that Japanese authorities may have intervened in currency markets to support their currency.