Tokyo and Washington Team Up to Arrest Yen's Slide to 40-Year Lows

Japanese Finance Minister Satsuki Katayama is expected to announce on Monday that Tokyo and Washington have taken joint action in the currency market to stabilize the yen, which has reached 40-year lows. The announcement follows rounds of yen-buying by Japanese and US authorities, the first such joint intervention since 2011.

The operation is still ongoing, according to a source familiar with the matter, who confirmed that Katayama will stress the two countries' determination to combat excessive yen declines. The Ministry of Finance and U.S. Treasury officials have not commented on the matter, but market sources say the joint intervention has already had an impact on the currency market.

The expected announcement comes after what market sources describe as rounds of yen-buying by Japanese and US authorities. The move is seen as a response to the Bank of Japan's decision last Friday to keep monetary policy steady while signaling a strong chance of an early interest rate hike.