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US and Japan intervene to stabilize the yen after four-decade low
The yen was lifted to a three-month high of 155.2 per dollar after Washington’s first yen purchase since 1998, but it later slipped to 157.4 by Wednesday.
A rare joint intervention to stabilize the yen has given US-Japan relations a near-term lift, analysts said, even as they cautioned that the currency’s rebound faces ongoing market and policy pressures.
According to SCMP Economy, Washington carried out its first yen purchase since 1998 after the Japanese currency had fallen to almost 164 yen per US dollar, a level described as the lowest in four decades. The operation briefly pushed the yen to a three-month high of 155.2 on Friday before it weakened.
By noon on Wednesday, the yen was trading at 157.44 per US dollar, SCMP Economy reported.
Ebury’s Matthew Ryan said the intervention could strengthen ties because both countries have aligned interests for now, with the US aiming to help prevent a widening trade deficit and Japan focused on limiting yen weakness that could stoke inflation and unsettle the bond market.