Forex
US and Japan Unite in Rare Joint Intervention to Boost Yen
The US and Japan have made an unprecedented joint move to prop up the yen. Last Friday, Washington sold euros to buy Japanese yen, marking the first time since 1998 that the US has bought yen to strengthen it.
The Federal Reserve Bank of New York executed the euro sale on behalf of the US Treasury through Goldman Sachs and Morgan Stanley. Analysts at HSBC called this move 'a highly unusual, maybe unprecedented, step.'
The joint operation followed a solo intervention by Tokyo, which was estimated to be around ¥8.45tn (US$52.8bn). The total amount spent by Japan on buying yen was up to US$36.58bn.