The US government conducted coordinated intervention with Japan on 31 July, selling euros to buy yen. The New York Fed's quarterly report disclosed the full details, marking the first coordinated yen-buying intervention in 28 years.
According to the quarterly report for July to September released by the Federal Reserve Bank of New York, it conducted coordinated intervention with the Japanese government to buy yen, selling euros and purchasing yen. The intervention was on a scale not seen for approximately 28 years, since June 1998.
The intervention was reportedly conducted by releasing euros from the Exchange Stabilization Fund. The New York Fed acted in the market as fiscal agent for the US Treasury. It said the purpose was to curb disorderly movements in the yen exchange rate. Reports on 30 July said that a rate check had been requested for dollar-yen, and the report characterized this check as having also been conducted on behalf of the US Treasury.
Immediately after the intervention, the market rapidly recovered, with dollar-yen falling from approximately ¥164 to approximately ¥155 between 30 July and 3 August. The coordinated stance of Japan and the United States once again attracted attention as the yen's weaker levels were corrected.