Japan and US Unite Against Yen Decline as Treasury Secretary Sets Sights on Buying Japanese Currency

The Japanese government and the US Treasury Department have taken joint action to stabilize the yen's value in the currency market, according to two sources familiar with the matter.

Japanese Finance Minister Satsuki Katayama will announce on Monday that Tokyo and Washington have worked together to arrest the yen's slide to 40-year lows. The sources said that Katayama is likely to stress the determination of both countries to combat excessive yen declines.

The joint intervention, which began last Thursday, marks the first such action in 15 years since Japan intervened in the currency market with Washington's cooperation in 2011. Market sources have reported rounds of yen-buying by Japanese and US authorities seeking to boost the yen from its lowest levels against the dollar since 1986.

The Bank of Japan data suggests that Tokyo sold as much as $58.97 billion to support the yen, with Treasury Secretary Scott Bessent noting last week that the yen 'seems very undervalued' and making a note to buy Japanese yen worth $5-10 billion at a cabinet meeting.