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A report from the U.S. Treasury Department indicated that unorganized movements in the Japanese yen exchange rate could destabilize global markets, due to the potential liquidation of financial positions and rising borrowing costs. This came after a joint intervention by Washington and Tokyo in July to buy yen in order to strengthen the Japanese currency, following the yen’s decline to near 160 against the dollar. The move reflects market concerns over ongoing volatility and its impact on the global economies.
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