US and Japan Unite to Stabilize Yen Amid Weakening Value
The yen has fallen to its weakest level since 1986, prompting a joint foreign exchange intervention by Japan and the United States for the first time in 15 years.
According to Kyodo News, the intervention was carried out on Friday, August 7, with both countries buying the yen to stabilize its value against the US dollar. The move comes as the yen has weakened significantly since Prime Minister Sanae Takaichi took office last October, falling by over 10 yen against the US dollar.
The pressure on the yen is due in part to concerns over Japan's fiscal policy and how it is financing its expansionary measures. Markets are worried that Japan's already poor fiscal health will worsen, and bond yields have risen to their highest level in nearly three decades.