Tokyo and Washington Unite to Support Yen Amidst Slump
Japanese Finance Minister Satsuki Katayama will announce on Monday that Tokyo and Washington have taken joint action to support the yen, which has been sliding to 40-year lows. This move marks the first such joint intervention since 2011.
The US Treasury Department's Secretary Scott Bessent stated last week that 'the yen seems very undervalued to me', hinting at a possible intervention. On Friday, BOJ Governor Kazuo Ueda announced that the central bank would keep monetary policy steady while signaling a strong chance of raising interest rates soon.
The Japanese government bought yen for US dollars in New York trading hours on Thursday, with Bank of Japan data showing it sold as much as $58.97 billion to support the yen. The widening rate differential between Japan and the US has contributed to the yen's decline against the dollar.