US and Japan Join Forces to Stabilize Yen

Japan and the United States have carried out their first joint yen intervention in 15 years. Finance Minister Satsuki Katayama announced on August 3 that Tokyo and Washington had coordinated a yen-buying operation to address excessive volatility in the currency.

The move was made necessary by the yen's slide toward ¥164 against the US dollar, its weakest level in roughly 39 years and eight months. The intervention succeeded in pushing the yen up to the ¥157 range in New York trading on July 31.

Katayama left open the possibility of additional intervention if market volatility persists. US Treasury Secretary Scott Bessent had earlier stated that Washington would 'not hesitate' to participate in further joint action.