Japan and US Unite to Stem Yen's Decline
Japan's Finance Minister Satsuki Katayama is expected to announce on Monday that Tokyo and Washington have taken joint action in the currency market to stabilize the yen, which has reached 40-year lows. The operation is still ongoing, according to a government official.
The move follows rounds of yen-buying by Japanese and U.S. authorities, the first such joint intervention since 2011. Market sources say that the Bank of Japan's decision on Friday to keep monetary policy steady while signaling an early interest rate hike may have contributed to the action.
Treasury Secretary Scott Bessent wrote 'To Do' followed by 'Buy Japanese Yen (JPY) $5-10 bil' on a notepad during a cabinet meeting, suggesting that the U.S. is also taking steps to intervene in the yen market.