Japan, US Stage Joint Yen-Buying Intervention

Japan and the US have conducted a joint yen-buying intervention to stabilize the Japanese currency, which has been plummeting to fresh 40-year lows. The coordinated action is a rare bilateral move, last seen in 2011 after a devastating earthquake in eastern Japan.

The intervention aims to prevent a selloff in the yen and Japanese government bonds from causing global spillovers, such as adding upward pressure on US Treasury yields. The joint effort has been welcomed by markets, with the yen surging over 1% to 155.20 per dollar after the announcement.

Japan's finance minister Satsuki Katayama confirmed the intervention and stated that the country will not hesitate to conduct further coordinated action if necessary. US Treasury Secretary Scott Bessent also supported the joint effort, calling it an important backstop against market volatility.