Japan and US Unite to Stem Yen's Slide
Japan and the US have taken joint action to stabilize the yen's value in the currency market. According to sources, Tokyo and Washington worked together last week to buy yen, with Japan selling as much as $58.97 billion to purchase the currency on Thursday, Bank of Japan data indicates.
The intervention comes after months of relentless decline in the yen's value, which has pushed up import prices and stoked broader inflation in Japan. Prime Minister Sanae Takaichi's public approval ratings have also suffered due to the economic strain caused by the weak currency.
This marks a rare instance of bilateral coordination between the two countries, with Treasury Secretary Scott Bessent advocating for higher Japanese interest rates. Bessent had previously stated that the yen 'seems very undervalued', and was seen carrying a handwritten note during a cabinet meeting suggesting $5-10 billion worth of yen purchases.