In the minutes of its September Federal Open Market Committee meeting released on the 7th, the US Federal Reserve acknowledged the coordinated yen-buying intervention carried out by Japanese and US monetary authorities in July of this year. It explained that the US Treasury led the operation, with the Federal Reserve Bank of New York conducting the intervention using the department's funds. Japanese and US monetary authorities resorted to the first coordinated yen-buying intervention in 28 years in order to correct excessive yen weakness. The Fed noted that the coordinated intervention directly led to a weaker dollar, but did not touch on the specific timing or scale of the intervention. It also analyzed that the dollar's decline against major currencies reflected narrowing interest rate differentials and improving growth in overseas economies.
Fed minutes confirm July coordinated yen-buying intervention led by US Treasury, which directly weakened the dollar and strengthened the yen.
