The yen briefly hit ¥160.20 to the dollar in the New York market as the currency weakened. Reports indicate that the effect of coordinated intervention by Japan and the United States began to fade after about four weeks.
The yen fell against the dollar in the New York foreign exchange market, briefly reaching ¥160.20 per dollar. As expectations of an early rate hike in the United States strengthened, pressure to sell the yen and buy the dollar increased, drawing attention to market movements since the coordinated intervention by Japan and the United States on 31 July.
The Ministry of Finance's yen-buying, dollar-selling intervention from 30 July to 26 August totaled ¥15.3993 trillion, the largest monthly amount on record. It was also noted that the yen had weakened to nearly ¥164 to the dollar immediately before the intervention.
Long-term interest rates rose after Federal Reserve Board (FRB) Chair Warren Warsh expressed concern in a speech about persistently high US inflation. With the Japan-US interest rate differential in focus, there were periods when selling the yen and buying the dollar became pronounced.
The Japanese government and the Bank of Japan conducted foreign exchange intervention on 30 July. US authorities joined the intervention on the following day, selling euros to buy yen. Immediately after the intervention, the yen surged briefly to the low ¥155 range.
Reports on the day indicated that the intervention's impact was beginning to fade after about four weeks.