Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?

As the currency market is also controlled by the laws of supply and demand where an increase in demand increases price and a decrease in supply does the same, should the US want to increase the value of the dollar, they should buy more US dollars.

This action would increase the demand for the dollar while reducing the amount of dollars in the market. This will invariably lead to an increase in the price of the dollar all else equal.

Assume the U.S. government wants to hold the value of the dollar at​ $1.00 U.S. equals 120 Japanese​ yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this​ trend?

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Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?