Japan and US Unite to Support Yen as Currency Tumbles to 40-Year Lows

Japan and the US have jointly intervened in the currency market for the first time in 15 years to support the yen. The intervention aims to stop the yen's fall to its lowest levels in 40 years, with Tokyo and Washington working together to counter excessive weakening of the Japanese currency.

The operation is ongoing, with Japan's Finance Minister Satsuki Katayama expected to announce the joint action on Monday. According to market sources, Japanese and US authorities began buying yen after its exchange rate approached its weakest levels against the dollar since 1986.

Japanese authorities reportedly conducted the first operation on Thursday during trading in New York, with a volume of dollar sales to support the yen reaching up to $58.97 billion. The intervention came shortly before the Bank of Japan's decision to maintain its current monetary policy while signaling a possible interest rate hike in the near future.

The main reason for the yen's decline remains the interest rate gap between Japan and the US, with the Federal Reserve pursuing a tighter policy that supports the dollar. Japanese top currency diplomat Atsushi Mimura emphasized the Finance Ministry and Bank of Japan's close coordination in this matter.