US and Japan Join Forces to Support Weakened Yen

Tokyo and Washington have taken joint action to support the Japanese yen for the first time in nearly three decades. The move comes after the currency sank to its weakest level since 1986, with a value of 163.24 per dollar last month.

The reported intervention was carried out through Goldman Sachs and Morgan Stanley on behalf of the U.S. Treasury, with the Federal Reserve Bank of New York selling euros to buy yen. The transactions were reportedly worth around $52.8 billion, according to analysts cited by the Financial Times.

While it remains unclear whether Tokyo was directly involved in the intervention, analysts point out that the price action had 'all the familiar fingerprints.' This suggests that Japanese authorities may have also taken steps to prop up their currency.