US and Japan Unite to Support Yen

The US and Japan have jointly intervened to prop up the Japanese yen for the first time in nearly 30 years, according to media reports. The intervention came after the yen slid to its weakest level since 1986 due to higher US interest rates, rising oil prices, and persistent capital outflows.

According to Financial Times, the Federal Reserve Bank of New York sold euros to buy yen on behalf of the US Treasury last Friday through Goldman Sachs and Morgan Stanley. The transactions were estimated to be around $52.8 billion, with some analysts suggesting that Japan's intervention may have totalled between 6-7 trillion yen.

Washington's move came as the yen rebounded sharply last week, leading to speculation that Japanese authorities had also intervened in currency markets. However, whether Tokyo was actually involved remains unclear, according to Stephen Innes at SPI Asset Management.