Tokyo and Washington Unite Against Yen's Slide

The Japanese government and the US Treasury are preparing to announce joint action to support the yen after it fell to its lowest level against the dollar in 40 years. According to Japanese government sources, the operation is ongoing.

Japanese Finance Minister Satsuki Katayama is expected to make the announcement on Monday, emphasizing that Tokyo and Washington want to prevent excessive declines in the yen's value.

The joint intervention would mark the first coordinated yen support since 2011. Market sources report that Japanese and US authorities have already conducted several rounds of yen-buying intervention, with Japan reportedly buying yen for dollars during New York trading hours on Thursday.

The move comes amid a widening interest-rate gap between Japan and the US, which has contributed to the yen's weakness. The Federal Reserve's increasingly hawkish stance has supported the dollar against the Japanese currency.