US and Japan Intervene Jointly to Prop Up Yen

The US and Japan intervened jointly in the foreign exchange market to support the Japanese yen after it hit a 40-year low against the US dollar.

The intervention was a coordinated effort between the two countries, with Washington joining Tokyo's efforts to curb sharp swings in the currency market. The US Treasury Secretary Scott Bessent confirmed that further action remains on the table if needed.

The yen recently hit 164 per dollar last Thursday, its weakest level since 1986. Following the intervention, the US dollar/Japanese yen pair dropped to 157.58 on Friday before briefly touching an intraday low of 155.23 on Monday.

Japan's Finance Ministry said the operation was intended to counter 'excessive volatility and disorderly movements' in the yen. The Bank of Japan raised its policy rate to 1% in June, but it remains well below the US Federal Reserve's 3.5% to 3.75% range.