US and Japan Team Up to Boost Yen Value

The Japanese yen has been experiencing a wild ride in recent weeks, plummeting to levels not seen since Japan's bubble era in 1986. On July 23, it hit an all-time low of 163.99 against the US dollar.

However, on Friday, July 31, during New York trading hours, the yen saw a coordinated intervention by both Japan and the US to strengthen its value. According to analysis of Bank of Japan data, Tokyo spent between JPY4 and 5 trillion (US$25.5 to 32.9 billion) in the effort.

The US Treasury Secretary's notepad from a cabinet meeting revealed a handwritten note stating 'To Do: Buy Japanese Yen (JPY) $5-10 bil.'

This move marks the first joint intervention between the two countries since March 2011, when a sharp rise in the yen's value followed Japan's devastating earthquake and tsunami.