The U.S. and Japan are said to have jointly intervened to prop up the Japanese yen for the first time in nearly 30 years after the currency plunged to its weakest level in decades, media reports, including initial Financial Times (FT) reporting, indicated.
The reported intervention came after the yen slid to 163.24 per dollar last month, its weakest level since 1986, as higher U.S. interest rates, rising oil prices and persistent capital outflows weighed on the currency.
The newspaper reported, citing people familiar with the matter, that the Federal Reserve Bank of New York took the unusual step of selling euros to buy yen on behalf of the U.S. Treasury on Friday.
The transactions were carried out through Goldman Sachs and Morgan Stanley, according to the Financial Times.
Washington's move came as the yen rebounded sharply last week, fuelling speculation that Japanese authorities had also intervened in currency markets.
