US and Japan Join Forces to Halt Yen's Record Slide
The US and Japan have collaborated on a joint intervention to stabilize the Japanese yen, which has been experiencing a significant decline. The currency recently hit a 40-year low, prompting the two nations to take action.
According to reports, the US Treasury Secretary Scott Bessent confirmed that around $5 to $10 billion worth of yen was purchased as part of the intervention. This marks the first joint effort between the two countries since 2011, following the devastating earthquake and tsunami in Japan.
Japan's Ministry of Finance has also acknowledged the intervention, stating that they will work together with the US to prevent further decline in the yen's value. Shigeto Nagai, head of Japan economics at Oxford Economics, noted that 'The United States agreed to participate in the coordinated intervention because it serves its national interests by offering the prospect of significant benefits at a low cost.'
The intervention aims to mitigate the impact of the yen's weakness on Japan's economy, which has been struggling due to factors such as a declining working-age population and reliance on energy imports priced in USD.