Japan and US Unite to Stabilize Yen Amid Historic Lows

Japan and the US are taking joint action to stabilize the yen, which has been sliding to historic lows. According to sources familiar with the matter, Japanese Finance Minister Satsuki Katayama will announce on Monday that Tokyo and Washington have intervened in the currency market. The intervention is a joint effort between the two countries, with the first such move since 2011.

The yen's decline has been driven by a widening rate differential with the US, where the Federal Reserve has shifted to a more hawkish stance. This has caused the dollar to rise against the yen, which has fallen to its lowest levels against the dollar since 1986.

The Japanese government bought yen for dollars in New York trading hours on Thursday, with data suggesting it sold as much as $58.97 billion to support the yen. The Bank of Japan has also signaled a strong chance it will raise interest rates soon, which could further boost the yen.