US and Japan Unite to Stabilize Yen Amid Record Low

The United States and Japan have joined forces to intervene in the yen's decline, with both countries buying up the currency in an effort to stabilize its value. The intervention, which took place on July 30-31, saw Japan's Ministry of Finance and the US Treasury step in to halt the yen's freefall after it touched a 40-year low near 164 per dollar.

Japan bought yen in massive quantities while the US Treasury sold euros to purchase yen. According to estimates, Japan's share of the operation alone was between $59 billion and $85 billion. The intervention had an initial impact, with the yen appreciating to roughly 155 per dollar following the operation.

However, by mid-August, the yen had drifted back to the 158-160 range. Despite this setback, both Japan's Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent have signaled their willingness to intervene again if conditions deteriorate further.