Joint US-Japan Intervention Fails to Stabilize Yen Amid Volatility Concerns

The U.S. and Japan have jointly intervened in the foreign exchange market to support the yen for the first time in 28 years, but the move has had a mixed response.

U.S. Treasury Secretary Scott Bessent cited excessive volatility of the Korean won as a concern, stating that if the yen weakens significantly, other currencies will follow suit.

Despite the joint intervention, the Japanese bond market reacted with caution, seeing the possibility of an early rate hike by the Bank of Japan.

The 10-year government bond bid conducted by Japan's Ministry of Finance was the slowest in over a year, and the bid rate fell to 2.56 times, its lowest since May last year.