US Intervenes in Currency Markets, Buying Yen for First Time Since 1998

The US government has intervened in currency markets for the first time in 28 years by buying Japanese yen to support its weakening value. The yen had hit a 40-year low against the dollar, prompting Japan and South Korea to join in with significant interventions.

Over $50 billion was spent on purchasing yen, disrupting the 'yen carry trade', where traders borrow cheap yen to invest in riskier assets like stocks and Bitcoin.

The impact of this intervention is already being felt, with Bitcoin falling by nearly 1.25% to around $63,000 while US stocks rose.