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Japan, US confirm joint yen-buying intervention, signal more action to prevent selloff

From Jerusalem Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Japan and the U.S. conducted coordinated intervention to buy yen, marking a rare bilateral action to halt the currency's slide.
  • The move aims to prevent a selloff in the yen and Japanese government bonds from causing global spillovers.
  • Both countries have stated they will not hesitate to take further action if necessary.

Japan and the United States have confirmed they conducted coordinated yen-buying intervention, a rare bilateral action aimed at halting the yen's slide to fresh 40-year lows. Japan's finance ministry announced on Monday that both countries "will not hesitate to take further action" to prevent a selloff.

We will not hesitate conducting further coordinated intervention

— Satsuki KatayamaJapan's Finance Minister speaking to reporters on Monday.

This joint intervention, the first since 2011, underscores the resolve of both nations to prevent a destabilizing selloff in the yen and Japanese government bonds (JGBs). Analysts suggest this could help prevent global spillovers, such as adding upward pressure on already rising U.S. Treasury yields.

The joint intervention is the culmination of Japan's alliance with the US.

— Atsushi MimuraJapan's top currency diplomat speaking to reporters on Monday.

President Donald Trump had previously stated on Sunday that the U.S. was assisting Japan in propping up the yen as a gesture of friendship and to benefit the global economy. Beyond supporting Japan as a strategic ally, the intervention is seen as a way for the U.S. to address concerns about the yen's extraordinary weakness, which could offset the positive effects of Trump's tariffs.

We will continue to align (currency policy) with the Bank of Japan's monetary policy.

— Atsushi MimuraJapan's top currency diplomat speaking to reporters on Monday, suggesting coordination between government and central bank.

Japan's Finance Minister Satsuki Katayama confirmed the intervention, stating that Friday's action "countered excessive volatility and disorderly movements in the Japanese yen in recent months." She added, "We will not hesitate conducting further coordinated intervention." The yen surged over 1% to 155.20 per dollar following the announcement. U.S. Treasury Secretary Scott Bessent also confirmed the intervention, stating Washington "will not hesitate to participate in further joint intervention" and "strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen."

We strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen.

— Scott BessentU.S. Treasury Secretary in a statement on X/Twitter.
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Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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