Japan and US Team Up Again to Support Yen

Currency traders are bracing for another potential joint intervention by Japan and the US after last week's coordinated effort triggered a rebound in the yen. The Finance Ministry of Japan and the US Treasury Department have been working together to shore up the currency, raising the stakes for those betting against it.

According to a person familiar with the matter, Finance Minister Satsuki Katayama is expected to announce as early as Monday that the two governments are collaborating on this issue. This partnership has been hinted at indirectly by Treasury Secretary Scott Bessent through public statements.

The joint efforts between Japan and the US have caught currency traders off guard, leading them to be more cautious when trading begins in Asia on Monday.