US and Japan Unite Against Yen Depreciation in Historic Forex Intervention

The US and Japan have engaged in joint intervention in the foreign exchange market for the first time in 15 years to prevent the yen's sharp depreciation.

The Japanese government intervened by selling dollars and buying yen, while the US Treasury Department sold euros and purchased yen through the New York Federal Reserve Bank.

This unusual cooperation is due to the shared interests of both countries, with Japan seeking to mitigate its rising import and living costs due to the record low yen, and the US concerned about the strong dollar's impact on export competitiveness and long-term interest rates.