Japan and US Unite to Stabilize Yen in Joint Intervention
The Japanese Finance Ministry confirmed that it conducted joint yen-buying intervention with the United States on July 31 to address 'excessive volatility and disorderly movements' in the yen. The ministry stated that it would not hesitate to take further action.
Finance Minister Satsuki Katayama said the ministry remains attentive and in close communication with counterparts at the US Treasury, echoing the words of US Treasury Secretary Scott Bessent who urged an 'upsized' US Treasury backstop for foreign central banks and monetary authorities. Bessent also stated that the Trump administration strongly supports Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen.
The intervention on July 31 marked a dramatic rebound in the currency, with the yen edging about 0.2% higher to 157.16 per US dollar in early Sydney trading. The partnership between the two governments has raised the stakes for anyone betting against the yen.