US and Japan Unite in Historic Yen Intervention

The United States and Japan have jointly intervened in currency markets to halt the yen's slide, with the Japanese currency strengthening to around 156.51 against the dollar following the coordinated action.

Japanese Finance Minister Satsuki Katayama announced the move, marking the first time Tokyo and Washington worked together since 2011 to support the yen.

The intervention came after the yen had plummeted to a 40-year low of around 164 per dollar. Japan sold approximately ¥8.45 trillion (about $52.4 billion) to buy back its own currency, while the U.S. Treasury bought yen through the Federal Reserve Bank of New York using Goldman Sachs and Morgan Stanley as dealers.

The carry trade, a strategy where investors borrow in low-interest-rate yen to invest in higher-yielding assets elsewhere, has largely contributed to the yen's weakness.