US intervention to support the yen
For the first time in 28 years, the United States and Japan jointly intervened in the foreign exchange market to support the yen, which had fallen to its lowest levels in four decades. The dollar reached approximately 164 yen before retreating to below 160 yen after the intervention. This move was aimed at preventing the deterioration of the Japanese currency and its impact on the U.S. bond market, as Japan holds about $1.14 trillion in U.S. bonds. Supporting the yen is a proactive step to safeguard both the Japanese and American economies, especially amid trade tensions and geopolitical uncertainties. These measures also reinforce the economic and political alliance between Washington and Tokyo, while reflecting growing concerns over relations with China.
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