US, Japan, and S. Korea Unite for Rare Joint Intervention in Foreign Exchange Market
The U.S., Japan, and South Korea have jointly intervened in the foreign-exchange market to stabilize their currencies and prevent potential financial shocks from spilling over into the AI supply chain.
On July 31, the New York Fed instructed Wall Street banks to sell euros and buy yen, while Japanese authorities deployed approximately 8.45 trillion yen ($52.8 billion) to support the yen on July 30.
The intervention aims to ease downward pressure on the yen and prevent further depreciation of the U.S. dollar, as well as mitigate risks to Asian assets in the AI supply chain.
Analysts believe this coordinated action is a 'price-keeping operation' (PKO) in the AI era, with the core objective of preventing continued pressure on the assets of Japan, South Korea, and other allies in the AI supply chain.