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U.S. and Japan intervene to strengthen the yen after a 40-year low

Political Guyentist · August 4, 20261 min read

AP

The coordinated move pulled the dollar below ¥156 after it traded above ¥163.
Figure 1Chart

The rate gap behind the yen's slide did not move

Tokyo and Washington bought yen after the dollar traded above ¥163, its strongest in 40 years; it fell to about ¥155.20. The differential that draws money into dollar assets is unchanged.

The rate gap behind the yen's slide did not moveTwo bars comparing the Federal Reserve's target range, drawn at its 3.75 percent top with a reference line at its 3.5 percent bottom, with the Bank of Japan's 1 percent benchmark rate. A reference line at 3.5 is labelled "The Fed's range: 3.5% here, 3.75% at the bar".
The numbers
The rate gap behind the yen's slide did not move
Benchmark policy rateBenchmark rateNote
Federal Reserve3.75%top of a 3.5%–3.75% target range
Bank of Japan1.00%
Source: Bank of Japan and Federal Reserve benchmark rates, via APPOLI