US and Japan Stage Coordinated Intervention to Support Weakening Yen

The US and Japan have coordinated an intervention to support the weakening yen, which has fallen to a 40-year low against the US dollar.

The yen's depreciation has significant repercussions for international finance as it is the world's third-most-traded currency.

The intervention began on July 31 when the US Treasury started selling euros for yen, while Japanese authorities bought yen.

This is not the first time the US has intervened to support the yen, having done so in 2011 and 1998 during times of economic crisis.

The yen's weakness is attributed to Japan's longstanding economic challenges combined with new pressures from the US-Israel war on Iran.