The yen fell to ¥160.20 per dollar in the New York market, briefly reaching the ¥160 range for the first time in four weeks. The Ministry of Finance's intervention amount was among the largest ever, and signs are emerging that the intervention's impact is beginning to fade.
In the New York foreign exchange market on the 28th, the yen fell against the dollar, briefly reaching ¥160.20 per dollar. The strengthening view that US inflation would be contained increased pressure for a weaker yen and stronger dollar.
The intervention to buy yen and sell dollars from 30 July to 26 August totaled ¥15.3993 trillion, the largest monthly total on record. Immediately before the intervention, in late July, the yen had been approaching ¥164 to the dollar.
Fed Chair Warsh was seen as expressing concern in a speech that US inflation would remain elevated and leaving open the possibility of further rate hikes. This pushed up long-term US interest rates, and the interest rate differential between Japan and the United States came into focus, with yen selling and dollar buying prevailing.
The Japanese government and the Bank of Japan intervened on 30 July. On 31 July, US authorities carried out coordinated intervention, selling euros and buying yen. Immediately after the intervention, the yen briefly surged to the low ¥155s.
Following these developments, some analysts believe that the intervention's impact has begun to fade after about four weeks.