Japan and US Unite Against Yen Slide: Joint Intervention Underway
Japanese Finance Minister Satsuki Katayama is set to announce on August 3 that Tokyo and Washington jointly intervened in the currency market to stem the yen's decline. According to two Japanese government officials, this marks the first joint intervention since 2011.
The operation, which is still ongoing, aims to boost the yen from its lowest levels against the dollar since 1986. Market sources say that Tokyo and Washington conducted rounds of yen-buying in the market, with Japan's government conducting a yen-buying, dollar-selling intervention on July 30.
US Treasury officials informed banks that they might intervene in the yen market and should 'stand ready for future action.' This follows comments from US Treasury Secretary Scott Bessent, who stated last week that the yen 'seems very undervalued to me.'