The yen reached its highest level since May following a coordinated intervention between Japan and the United States, the first since 2011, which pushed the currency back from a 40-year low near 164 yen per dollar. Japan’s Ministry of Finance spent approximately $36.58 billion in the immediate phase of the July operation, with total spending reaching about $170 billion year-to-date. The yen’s recovery toward 155-156 per dollar was driven by interest rate differentials between the Bank of Japan’s ultra-loose monetary policy and the Federal Reserve’s elevated rates, compounded by rising energy import costs. By early September, the yen had retreated to trade between 158 and 160 per dollar, signaling renewed downward pressure and sparking speculation about potential further intervention.
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