The yen plunged against the dollar in the New York market on 28 August, reaching the ¥160-per-dollar range. About four weeks after Japan and the United States carried out coordinated intervention, the intervention's effect has begun to fade, and expectations of additional rate hikes by the Federal Reserve have become the market's focus.
On 28 August, the yen briefly reached ¥160.20 to the dollar in the New York foreign exchange market, entering a phase in which it again reached the ¥160 range even after the Japan-U.S. coordinated intervention. The intervention was carried out on 30 and 31 July, after which the yen resumed its move toward depreciation.
The trigger for the yen's depreciation was remarks by Fed Chair Warsh at the Jackson Hole meeting, which suggested the possibility of additional rate hikes and heightened market caution. Rising long-term interest rates and renewed attention to the Japan-U.S. interest-rate differential prompted yen selling.
The stock market was also affected, with the Dow average falling $9.45 from the previous day to $53,559.99.
According to the Ministry of Finance, total intervention to buy yen and sell dollars from 30 July to 26 August was ¥15.3993 trillion, the largest monthly intervention on record. Including the unilateral intervention conducted from April to May, the annual total was ¥27.1342 trillion, exceeding the previous record.