Coordinated currency market intervention by Japan and South Korea lifts the Yen and Won amid 40-year lows for JPY.
Japan and South Korea conducted a rare joint intervention to buy their currencies, bolstering the Japanese Yen (JPY) and Korean Won (KRW) after the Yen hit 40-year lows. The move, reportedly coordinated with the US, saw the Won strengthen 2% to a nine-month high.
The Bank of Japan (BoJ) left interest rates unchanged, as expected, but traders quickly tested Tokyo’s resolve. Earlier reports suggested Japan executed a large JPY-buying intervention, while US authorities conducted rate checks. The USD/JPY pair rose 0.74% to 160.72 by press time.
The intervention follows prolonged pressure on the Yen, driven by policy divergence with the US and risk sentiment. The BoJ’s mandate includes currency control, though past interventions have typically aimed to weaken the Yen.