US and Japan Jointly Intervene in Yen Market

The US and Japan have jointly intervened in the foreign exchange market to stabilize the value of the yen, which has been declining sharply. This marks the first time since 1998 that both countries have taken joint action to prop up the yen.

A memo from US Treasury Secretary Scott Bessent, obtained by Reuters, appears to show that Washington intervened in the market to buy large amounts of yen, with a target of $5 billion to $10 billion. The intervention was carried out through Goldman Sachs and Morgan Stanley, which sold euros and bought yen.

The move is unusual, as the US typically does not intervene in foreign exchange markets. However, analysts point out that the weak yen could have far-reaching consequences for both the Japanese economy and the global financial market.