Joint Yen Intervention: Tokyo and Washington Unite Against Currency Weakness

Japan's Finance Minister Satsuki Katayama is set to confirm on Monday that Tokyo and Washington conducted joint currency intervention, according to two Japanese government officials cited in a Reuters report.

The operation would mark the first joint yen intervention since 2011 and the currency's lowest level against the dollar since 1986. Japan reportedly bought yen for dollars during New York trading hours on Thursday, with Bank of Japan data suggesting sales of as much as $58.97 billion to support the currency.

The US Treasury told a number of banks it might intervene in the yen market and should stand ready for future action, with Secretary Scott Bessent reportedly noting a plan to buy $5-10 billion in yen. The BOJ's parallel signal that a rate hike is likely soon adds a monetary policy lever alongside intervention.

The coordination between Tokyo and Washington is partly driven by shared concern over rising US Treasury yields, which could worsen pressure on US debt markets if not addressed. Analysts see the cooperation as significant, with former BOJ official Nobuyasu Atago noting that both countries face the risk of inflation running hot and their central banks falling behind the curve.