The yen reached a three-month high against the US dollar after Japan and the United States confirmed they had carried out a rare joint operation to support the Japanese currency late last week.
Key facts
- The yen strengthened to ¥155 to the US dollar on Monday.
- It is the yen's highest level since early May, according to the Guardian.
- Japan and the US confirmed a rare joint currency intervention late last week.
- The move was a combined operation by Tokyo and Washington.
The Japanese yen has climbed to its highest level in three months after the US and Japanese governments launched a combined operation to support the currency, according to the Guardian.
The yen strengthened to ¥155 to the US dollar on Monday, its strongest level since early May. The move followed confirmation from both Tokyo and Washington that they had carried out a rare joint currency intervention late last week.
Currency interventions of this kind are unusual, and a coordinated effort involving both the United States and Japan is rarer still. The Guardian described the late-week operation as a rare joint intervention by the two governments.
The report links the currency’s rise directly to the intervention, noting that the yen reached the three-month high only after the two governments publicly confirmed their actions.
The development places the value of the yen and the mechanics of the intervention at the centre of attention for markets watching the relationship between the world’s largest economy and Japan.
Why it matters
A coordinated currency intervention by the US and Japan is unusual and signals a significant level of government involvement in supporting the yen. Movements in the yen-dollar exchange rate affect trade, investment and prices across two of the world's largest economies.
Frequently asked questions
How much did the yen strengthen?
According to the Guardian, the yen strengthened to ¥155 to the US dollar on Monday, its highest level since early May.
Who carried out the currency intervention?
The US and Japanese governments confirmed they carried out a rare joint intervention late last week, according to the Guardian.
Why is this intervention notable?
The Guardian describes it as a rare joint currency intervention, meaning it was a coordinated operation between Tokyo and Washington rather than a single-country action.