Japan, US step into yen market after currency hits 1986 low

Japan and the United States moved together to support the yen after the currency fell to its weakest level against the dollar since 1986, highlighting growing concern over the slide. Japanese authorities had already spent nearly $74 billion in late April to prop up the yen after steep declines, but that rebound faded and the currency weakened further by July 23. The pressure has been driven by the wide interest-rate gap between Japan and the United States, which has encouraged investors to borrow cheaply in yen and buy higher-yielding assets abroad. The weaker yen has helped exporters and tourism, but it has also pushed up the cost of imported energy and raw materials in Japan, worsening the squeeze on consumers and domestically focused businesses.