The United States and Japan launched a coordinated intervention estimated at 75 to 85 billion dollars to prop up the yen, which had reached multi-decade lows near 164 yen per dollar around July 30. The yen rallied 5% intraday before stabilizing around 158-159 by mid-August, but forex traders are now turning to the Swiss franc as a new funding currency for carry trades. This reallocation is creating downward pressure on the franc, which would benefit Swiss exporters and the Swiss National Bank, historically inclined to weaken its own currency. The intervention risk remains higher for the yen than for the franc, as the SNB has traditionally intervened to weaken rather than strengthen the franc.
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