US and Japan Conduct Rare Joint Yen Intervention
The US and Japan have agreed to conduct their first joint yen intervention since 2011 in an effort to halt the currency's slide to fresh 40-year lows.
The coordinated action, which was made public on Monday by Japan's Finance Ministry, saw both countries buying yen in an effort to counter excessive volatility and disorderly movements in the Japanese currency.
US Treasury Secretary Scott Bessent had been vocal about his support for a stronger yen, saying that it would help reduce upward pressure on US Treasury yields. The move also helped to boost Japan's economy, which has struggled with high import prices due to the weak yen.
The intervention was seen as a sign of the close relationship between the two countries, particularly in the area of exchange rates. Japanese Finance Minister Satsuki Katayama said that she and Bessent had held frequent meetings to discuss foreign exchange matters, including exchange rates.