Japan and US Unite to Boost Yen, Warn of Further Market Intervention
The Japanese yen has risen sharply against the US dollar for the first time in 15 years, amid warnings of further intervention. The yen briefly surged to the lower 155 yen range against the dollar on Monday morning after Japan confirmed joint currency market intervention with the US.
According to Finance Minister Satsuki Katayama, the ministry conducted coordinated yen buying with the US Department of the Treasury late last week, noting that the action was taken to counter excessive yen volatility in recent months. The yen-buying operations from Thursday night through Saturday morning, Japan time, marked the first coordinated market intervention by Tokyo and Washington since 2011.
Katayama emphasized that both countries 'will not hesitate to conduct a further joint intervention.' The move has sent Tokyo stocks tumbling, with the Nikkei index briefly plunging over 2 percent amid concern that the surging yen could disrupt companies' business outlooks.