Market Pulse: Japan, US Plot Yen Rescue as Speculators Face Reckoning

Across major exchanges, japan and the United States are preparing to unveil a joint policy as early as next week to stop speculators from driving the Japanese yen to fresh multi-decade lows.

The move follows a dramatic week of currency action.

On July 30, Japan’s Ministry of Finance sold as much as $58.97 billion to buy yen in a single day, according to central bank data, marking the currency’s largest one-day gain against the dollar since 2022.

The yen jumped from near 164 per dollar toward the upper 150s.

Treasury told major banks to prepare for possible intervention of its own, according to a person familiar with the matter.

The Financial Times (FT) later reported that the New York Federal Reserve had sold euros to buy yen through banks including Goldman Sachs and Morgan Stanley.

It would be Washington’s first direct move to support the yen in more than a decade, since coordinated Group of Seven action after Japan’s 2011 earthquake and tsunami.

A Reuters photograph added visual proof of U.S.