The Japanese and US governments conducted coordinated intervention to buy yen in the foreign exchange market on 31 July. The intervention was intended to curb the yen's decline, in response to a move toward levels not seen for approximately 40 years.
The Japanese and US governments announced that they had conducted coordinated intervention to buy yen in the foreign exchange market on 31 July. The intervention was intended to curb the yen's decline and the dollar's rise after the yen weakened further.
On 23 July, the dollar-yen rate reached ¥163.99, approaching ¥164, marking the yen's weakest level in 39 years and 7 months, since December 1986.
The yen's relative decline in strength has been cited as a factor behind its depreciation. The BIS real effective exchange rate was described as having fallen to a 56-year low as of March this year.
The latest intervention is regarded as the first coordinated intervention since 1998, and the response of then-Treasury Secretary Robert Rubin is also mentioned. The view is also expressed that the yen's decline and the fall in government bond prices will continue unless the underlying factors are eliminated.