The United States intervened to support the Japanese yen for the first time in nearly three decades after the currency hit a 40-year low. This coordinated Friday move lifted the yen to 157 per dollar, but it featured an unusual characteristic: the New York Fed reportedly sold euros rather than dollars to fund the purchase. Japan is estimated to have spent $52.8 billion, while the U.S. contribution is estimated between $5 billion and $10 billion. Experts warn that using euros instead of dollars could confuse markets and may not address the fundamental issues behind yen’s weakness, particularly Japan’s overly accommodative monetary policy.
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