Japan and US Team Up to Prop Up Weakening Yen

Japan and the US have confirmed that they conducted joint yen-buying intervention to halt the yen's slide to fresh 40-year lows.

The move, which is the first since a coordinated action in 2011, aims to prevent a sell-off in the yen and Japanese government bonds (JGB) from causing global spillovers.

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

The joint intervention is seen as a sign of both countries' resolve to prevent a sell-off in the yen, which has been driven by structural factors such as rising fuel costs from the Middle East conflict and wide Japan-U.S. interest rate differentials.

U.S. Treasury Secretary Scott Bessent confirmed the effort, saying that Washington 'will not hesitate to participate in further joint intervention.'