US-Japan Currency Intervention Sparks ECB Fury Over Uninformed Euro Sell-Off

The U.S. and Japan recently collaborated on their first coordinated currency intervention in nearly 28 years, effectively boosting the yen to its highest level against the dollar since mid-May.

Market estimates suggest that Japan's Ministry of Finance invested approximately ¥8.45 trillion ($53.1 billion) into buying yen, with the U.S. Treasury joining forces on July 31. The intervention succeeded in lifting the yen to a high of 155.20 against the dollar, but it came at an unexpected cost for Europe.

The assets sold by the U.S. Treasury were euros, which sparked fierce discontent among European Central Bank officials who deemed the move a 'serious violation' of cooperation norms among major Western central banks.