Yen Rises After Coordinated Intervention by Japan and US

The yen has strengthened against both the euro and the dollar following a coordinated intervention by Japan and the US last week. The move, which saw Tokyo and Washington stepping into the foreign exchange market to support the Japanese currency, has led to speculation that further intervention may be on the horizon.

The Bank of Japan's gradual approach to monetary policy tightening has kept yield differentials wide between Japan and the rest of the world, putting pressure on the yen. However, the recent coordinated action could alter market sentiment that FX interventions are ineffective.

According to central bank data, Japan may have spent as much as $36.58 billion to buy yen in the latest intervention, bringing the total amount spent this year to over $100 billion.