US and Japan Join Forces to Support Yen Amid Interest Rate Divergence
The US and Japan have jointly intervened to support the Japanese yen for the first time in nearly 30 years. The move came after the yen slid to its weakest level since 1986, with a price of 163.24 per dollar last month.
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.
The intervention is estimated to have totalled around $52.8 billion, with some analysts suggesting it could be as high as 8.45 trillion yen.