US-Japan Joint Intervention Halts Yen Depreciation

The U.S. and Japan have engaged in joint intervention in the foreign exchange market for the first time in 15 years, aiming to prevent the yen's sharp depreciation.

The intervention took place on July 31st, with the U.S. Treasury Department selling euros and buying yen through the New York Federal Reserve Bank, while the Japanese government sold dollars and bought yen using its foreign exchange reserves.

This unusual cooperation between the two countries has sparked market attention, with analysts pointing out that Japan's interests align with those of the U.S., as a strong dollar can reduce export competitiveness for both nations.

The intervention was successful in raising the yen's value to 157 yen per dollar, and some experts predict that further intervention may occur shortly after the opening of the Asian foreign exchange market on August 3rd.