US, Japan, South Korea Launch Joint Foreign Exchange Intervention

The United States, Japan, and South Korea have launched a joint intervention in the foreign exchange market to stabilize the value of their currencies.

This coordinated effort is the largest such intervention in nearly three decades, targeting the depreciation pressure on the yen and won.

The operation involves the US selling euros and buying yen, while Japan sold U.S. dollars to support its currency. South Korea also intervened by selling U.S. dollars, causing the won to appreciate by 2% in a single day.

The Federal Reserve Bank of New York implemented the intervention through Goldman Sachs and Morgan Stanley, marking the first direct US participation in yen intervention in nearly 30 years.