US, Japan step in to support Yen

New York [US], August 3: Washington and Tokyo jointly intervened to shore up the Japanese yen for the first time in nearly 30 years after the currency sank to its weakest level in decades, the Financial Times has reported.
The reported intervention came after the yen slid to 163.24 per dollar last month, its weakest level since 1986, as higher US interest rates, rising oil prices and persistent capital outflows weighed on the currency.
The newspaper reported, citing people familiar with the matter, that the Federal Reserve Bank of New York took the unusual step of selling euros to buy yen on behalf of the US Treasury on Friday.
The transactions were carried out through Goldman Sachs and Morgan Stanley, according to the Financial Times.
Washington's move came as the yen rebounded sharply last week, fuelling speculation that Japanese authorities had also intervened in currency markets.The unit was trading at 160.53 against the dollar Friday, having risen as high as 158 yen a day earlier.
"Whether Tokyo was actually involved remains unclear, but the price action had all the familiar fingerprints," Stephen Innes at SPI Asset Management wrote in a comment.
Analysts cited by FT estimated Japan's intervention may have totalled about 8.45 trillion yen.
Source: Qatar Tribune