US Sells Euros to Prop Up Yen in Unconventional Intervention

The US Treasury and the Federal Reserve have intervened in the foreign exchange market to prop up the yen, but with an unusual twist. Instead of selling dollars to buy yen, they sold euros to fund the purchase. This move marks the first time in nearly three decades that the US has helped boost Japan's currency.

The coordinated effort on Friday lifted the yen's value against the dollar, reaching 157 yen to the dollar. The last time the US and Japan jointly bought the yen was during the Asian financial crisis in 1998.

In 2011, the US, along with other G7 countries, intentionally weakened the yen after it had become too strong following the Fukushima disaster. A strong yen can harm Japan's export-reliant economy.