Japan and US Unite to Stem Yen's Slide

Japan and the US conducted coordinated yen-buying intervention on Friday to halt the yen's slide to fresh 40-year lows. This rare bilateral action underscores both countries' resolve to prevent a selloff in the yen and Japanese government bonds (JGBs) from causing global spillovers.

The joint intervention is the first since 2011, when a coordinated action was taken to weaken the yen following the devastating earthquake in eastern Japan. President Donald Trump said on Sunday that the US was helping Japan prop up the yen as a sign of friendship and to help the world economy.

Finance Minister Satsuki Katayama told reporters that the intervention countered excessive volatility and disorderly movements in the Japanese yen in recent months, adding that 'We will not hesitate conducting further coordinated intervention.'

The BOJ's monetary policy is now under scrutiny as it was last week kept rates on hold but signalled scope for a rate hike as soon as its next policy meeting in September.