Japan and US Intervene in Currency Market, Spend $53.7 Billion on Yen

Japan has confirmed its first joint currency intervention with the US in 15 years, stating it will act further if needed. The move comes after the Jen slid to its lowest levels since 1986 last week against the greenback.

The Japanese Finance Minister Satsuki Katayama announced that the ministry intervened in the market on Friday in coordination with the US Treasury, confirming previous reports by The Financial Times. According to the report, the New York Fed sold euros to buy yen on behalf of the US treasury, resulting in a sharp rebound of the Yen to levels of 157.4 on Friday.

The intervention was made after the Jen saw significant decline to levels of 164.2 two days prior. Japan's largest ever single-day intervention spent over $53.7 billion or ¥8.45 trillion, according to Bloomberg.

Treasury Secretary Scott Bessent called the Yen movements 'disorderly', and stated that the Treasury is ready to keep helping Japan. US President Donald Trump also confirmed the joint intervention, stating it was a sign of their friendship with Japan, hoping they will reap a financial benefit from helping their ally.