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Japan, US confirm joint yen-buying intervention, signal more action
🇸🇬 Singapore /Economy & Trade

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

From CNA · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Japan and the United States have confirmed a coordinated intervention to buy yen, aiming to halt its slide to 40-year lows.
  • This marks the first joint action since 2011 and signals a strong resolve to prevent global economic spillovers.
  • Japan may have spent up to $36.58 billion on the intervention, with both nations vowing to take further action if necessary.

Japan and the United States have confirmed a rare, coordinated intervention to buy the Japanese yen, signaling their commitment to halting the currency's rapid depreciation.

We will not hesitate conducting further coordinated intervention.

— Satsuki KatayamaJapan's Finance Minister addressed reporters on Monday regarding future currency actions.

The joint action, which occurred on Friday, aimed to counter "excessive volatility and disorderly movements" in the yen, which had recently hit fresh 40-year lows. This intervention underscores the resolve of both nations to prevent a selloff in the yen and Japanese government bonds from causing wider global economic disruptions, such as increasing pressure on already rising U.S. Treasury yields.

This marks the first coordinated yen-buying intervention by Japan and the U.S. since 2011, when they took similar action following the devastating earthquake in eastern Japan. Central bank data suggests Japan may have spent as much as $36.58 billion during Friday's intervention. U.S. President Donald Trump stated that the United States was assisting Japan as a sign of friendship and to support the global economy.

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

— Atsushi MimuraJapan's top currency diplomat commented on the bilateral action.

Finance Minister Satsuki Katayama confirmed the intervention, stating, "We will not hesitate conducting further coordinated intervention." Following the announcement, the yen surged over 1% to 155.20 per dollar, its strongest level since early May. Traders remain watchful for any further intervention.

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

— Atsushi MimuraJapan's top currency diplomat indicated coordination with the central bank.

U.S. Treasury Secretary Scott Bessent also confirmed the joint effort, affirming that Washington "will not hesitate to participate in further joint intervention." He expressed strong support for Japan's "decisive market and monetary steps to correct the substantial undervaluation of the yen" and reiterated calls for further interest-rate hikes by the Bank of Japan (BOJ). The BOJ recently maintained its rates but indicated potential for future hikes.

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

— Scott BessentThe U.S. Treasury Secretary expressed support for Japan's currency measures.
DistantNews Editorial

Originally published by CNA. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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