The first joint US-Japan currency intervention since 1998 is reshaping exchange rate dynamics across Asia, and Beijing is caught in the current. The US and Japan just pulled off something the currency world hasn’t seen in nearly three decades. The joint operation, executed on July 30-31, involved buying yen in a move that pushed the currency from around 164 per dollar to approximately 155. Japan’s Finance Minister Katayama struck a more tactical tone, signaling readiness for further action if the yen came under pressure again. As of August 12, the USD/CNY exchange rate sat at approximately 6.748, reflecting a modest 0.54% gain for the yuan over the preceding month.