US and Japan Coordinate Intervention to Stabilize Weakening Yen

The US and Japan have coordinated to intervene in currency markets to stabilize the weakening yen, a move not seen in over a decade.

Prior to this intervention, the yen had weakened significantly against the dollar this year, with its value falling to around $1 = 163 yen in July, from around $1 = 147 yen a year ago. The weakness was attributed to concerns about Japan's increasing spending and higher oil costs due to the US war with Iran.

The Treasury Department has assisted its Japanese counterparts in this effort, which aims to counter 'excessive volatility and disorderly movements' in the yen.

Treasury Secretary Scott Bessent noted that Friday's coordinated foreign exchange actions countered disorderly yen movements, adding that the US will not hesitate to participate in further joint intervention if needed.