US and Japan Unite to Save Yen from Record Lows

Tokyo and Washington have taken joint action to support the yen for the first time in nearly three decades, according to reports. The intervention came after the Japanese currency sank to its weakest level in decades, with a value of 163.24 per dollar last month.

The reported joint effort between the two countries was carried out through Goldman Sachs and Morgan Stanley, who sold euros to buy yen on behalf of the U.S. Treasury. This move would be the first coordinated U.S.-Japan effort to support the yen since 1998.

Analysts estimate that Japan's intervention may have totalled around 8.45 trillion yen ($52.8 billion), although some estimates put this figure between 6 trillion and 7 trillion yen. The move was seen as a response to the yen's sharp rebound last week, which sparked speculation about Japanese authorities' involvement in currency markets.

While it is unclear whether Tokyo was directly involved in the intervention, analysts noted that the price action had 'all the familiar fingerprints.' This suggests that the joint effort may have been a deliberate attempt to support the yen and prevent further decline.