Yen Surges Amid Coordinated Intervention by Japan and US
The yen surged to its strongest level in about three months after Japan and the US conducted coordinated intervention to support the Japanese currency.
Last week, Tokyo and Washington stepped into the foreign exchange markets, buying yen in a bid to strengthen it. The Japanese Finance Ministry said they would not hesitate to take further action if needed.
The yen rose 0.18% against the dollar, trading at 157.05 per unit, and advanced against other currencies like the euro and sterling. Japan may have spent as much as $36.58 billion on its latest intervention, bringing the total amount spent this year to over $100 billion.
Economists are divided on the effectiveness of foreign exchange intervention, with some arguing it can exert a significant influence on the market. However, others believe it has little long-term impact and only alters short-term market flows.