US and Japan Stage Rare Joint Intervention in Currency Markets

The Japanese yen has experienced its first joint intervention by Washington and Tokyo in nearly 30 years. According to the Financial Times, the Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury last Friday through Goldman Sachs and Morgan Stanley.

The reported intervention came as the yen continued to weaken against the dollar due to higher US interest rates, rising oil prices, and persistent capital outflows. The currency had slid to its weakest level since 1986, reaching 163.24 per dollar in July.

Analysts estimate that Japan's intervention may have totaled around ¥8.45 trillion (RM215 billion), although the exact amount remains unclear. The move is seen as a coordinated effort by both countries to support the yen and stem its decline.