Discover how Washington and Tokyo's unprecedented joint intervention aims to stabilise the yen, which has hit its lowest point in decades, and what this means for global markets.
Washington and Tokyo jointly intervened to shore up the Japanese yen for the first time in nearly 30 years after the currency sank to its weakest level in decades, the Financial Times has reported.
The reported intervention came after the yen slid to 163.24 per dollar last month, its weakest level since 1986, as higher US 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 US Treasury on Friday.
The transactions were carried out through Goldman Sachs and Morgan Stanley, according to the Financial Times.
