Washington and Tokyo’s rare joint intervention to support the yen has put renewed focus on Japan, the largest foreign holder of US Treasurys. Early on Tuesday, the dollar-yen pair traded at around 157 against the dollar after rebounding from a nearly four-decade low of around 164, following intervention by US and Japanese authorities on Friday.
The yen rallied sharply on Monday amid speculation that authorities may have intervened to prop up the currency again after coordinated action between the US and Japan last week. The Japanese currency swung from a small decline to gain as much as 1.4% versus the dollar during morning trading in Tokyo. It then pared a
The US and Japan carried out their first coordinated yen-buying intervention in nearly three decades on Friday, stepping into currency markets after the yen weakened to a 40-year low against the dollar. Japanese Finance Minister Satsuki Katayama confirmed the operation on Monday and warned that the two countries could intervene together again if needed. The
