Tokyo, Washington Unite Against Slumping Yen

Japan's Finance Minister Satsuki Katayama is set to announce on Monday that Tokyo and Washington took joint action in the currency market to stem the yen's decline. The move marks the first joint intervention since 2011, with sources indicating that both countries aimed to arrest the yen's slide to 40-year lows.

The Japanese government purchased yen for dollars in New York trading hours on Thursday, according to a market source, with Bank of Japan data suggesting it sold as much as $58.97 billion to support the yen. This intervention came just before the BOJ decided to keep monetary policy steady while signaling a strong chance it would raise interest rates soon.

The widening rate differential between Japan and the US, where the Federal Reserve has shifted to a more hawkish stance, has contributed significantly to the dollar's rise against the yen. Critics have raised concerns that Japan could face constraints in continued yen-buying intervention due to potential funding pressures and market reactions.