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Japan and United States Conduct First Joint Forex Intervention in 15 Years

3 sources across 2 countries · Japan · United Kingdom

Who reported this

  • Kyodo News Japan · Centre · Non-profit publisher cooperative
  • The Japan Times Japan · Centre · News2u Holdings
  • Financial Times United Kingdom · Centre · Nikkei Inc.

What the colours mean

  • Left
  • Centre-left
  • Centre
  • Centre-right
  • Right
  • A hatched block means the outlet is affiliated with, or controlled by, a state.

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Every outlet covering this story shares the same political lean; read with that in mind.

Japan and the United States conducted a coordinated yen buying operation late last week to stem the currency's fall to a 40 year low against the U.S. dollar. This marks the first joint market intervention between the two nations in 15 years. The action followed the yen hitting 163.99 to the U.S. dollar on July 23, which was its weakest level since 1986. The decline occurred amid concerns regarding the expansionary fiscal policy of Prime Minister Sanae Takaichi and the methods of its funding. Both countries warned that further moves could be taken. Analysts suggest the U.S. intervention may be used to increase pressure on Japan regarding trade and interest rates. Some observers view the move as a signal of a new era of U.S. currency activism where the U.S. is prepared to disrupt trades that conflict with its interests.

How each side framed it

Centre
The center lean outlets reported the event as a coordinated effort to stabilize the yen, while noting that some analysts view it as a strategic move by the U.S. to exert pressure on Japanese trade and monetary policy.

Sources

88% of the statements in this article were traced back to the source articles listed above.