Japan and US Unite for Joint Yen Intervention

Japan and the US conducted joint yen-buying intervention on Friday to counter excessive volatility in the Japanese currency. This move underscores both countries' resolve to prevent a sell-off in the yen from causing global spillovers, such as adding upward pressure on already rising US Treasury yields.

The intervention is the first since coordinated action in 2011 to weaken the yen following the devastating earthquake in eastern Japan. President Donald Trump said the US was helping Japan prop up the yen as a sign of friendship and to help the world economy.

Japan's finance ministry confirmed the joint action and stated that it would not hesitate to conduct further coordinated intervention if necessary. The yen surged more than 1% to 155.20 per dollar after the announcement, its strongest since early May.