Japan and US Join Forces to Prop Up Slumping Yen

Japan and the US have confirmed joint intervention in the yen currency market to halt its slide to fresh 40-year lows. The move, which is a rare bilateral action, aims to prevent global spillovers such as adding upward pressure on already rising US Treasury yields.

The Japanese finance ministry said that Friday's yen-buying intervention with the US Treasury Department 'countered excessive volatility and disorderly movements in the Japanese yen in recent months.'

Japan has been struggling to curb a relentless drop in the yen, which pushes up import prices and stokes broader inflation. The government's efforts to prop up the currency have had limited success so far.

US Treasury Secretary Scott Bessent said that Washington 'will not hesitate to participate in further joint intervention' and praised Japan for taking decisive market steps to correct the yen's undervaluation.