Tokyo and Washington Unite Against Yen Slide

The yen has been on a slide against the US dollar for months, but it looks like Japan and the US have finally taken joint action to support the currency. According to government officials in Tokyo, the two countries will announce their cooperation on Monday, with Japanese Finance Minister Satsuki Katayama highlighting their commitment to preventing excessive depreciation of the yen.

The intervention is believed to have been carried out earlier this week, with Japan purchasing yen against the dollar during New York trading hours on Thursday. The Bank of Japan's data suggests that Tokyo may have sold up to $58.97 billion to support the currency.

A widening interest rate gap between Japan and the US has been a major factor behind the yen's decline, as higher US rates have strengthened the dollar. The BOJ decided to maintain its monetary policy stance while signalling a strong possibility of future interest rate hikes.

The Japanese Ministry of Finance and the US Treasury Department have not commented on the reports, but analysts say cooperation between Tokyo and Washington may also be linked to concerns over rising US Treasury yields.