Implications of US-Japan Joint Currency Intervention for the Yen, Interest Rates, and the US Dollar

Goldman Sachs analysts interpret the largest joint US-Japan currency intervention in 15 years, with Japan's intervention between July 30 and 31 reaching up to $85 billion — the largest two-day intervention on record outside of October 2011. US participation was smaller in scale but signaled support for the yen. This intervention is only a short-term market stabilization measure; long-term efforts must drive Japanese investors to return to domestic assets to reverse the yen's undervaluation.