US and Japan Purchase ¥8.45tn to Support Yen at 40-Year Low

The Japanese government plans to confirm a joint effort with the US to purchase up to ¥8.45 trillion (£40 billion) worth of yen after it reached a 40-year low. The US intervention, carried out on Friday, involved the Federal Reserve Bank of New York selling euros to buy yen. This marks the first US intervention in Japan's currency since 2011, aiming to stabilize the yen, which has been weakened by low interest rates. For ordinary investors, this intervention may lead to volatility in currency markets and impact the value of the yen going forward.