Japan and US Unite to Rein in Yen's Dramatic Slide

Currency traders are bracing for more joint intervention by Japan and the US as they work together to shore up the yen. The Finance Ministry and the US Treasury Department have been coordinating their efforts, with Finance Minister Satsuki Katayama set to announce that they're working in tandem.

Last week's coordinated operations in Tokyo and New York triggered a dramatic rebound in the yen, reversing more than two months of losses. The intervention included direct purchases in the market, calls by officials to banks, and jawboning from Treasury Secretary Scott Bessent and Finance Minister Satsuki Katayama.

Analysts at Goldman Sachs Group Inc. believe that authorities would intervene further if the yen begins to unwind its recent move, as was the case in May of this year. The yen has been under pressure due to rising oil prices, Japan's persistent budget deficits, and a yawning interest-rate gap with the US and other major economies.