US and Japan Stage Rare Joint Intervention to Strengthen Yen

The US and Japan have joined forces to stabilize the yen, with unprecedented coordination between the two countries resulting in one of the strongest rebounds in the Japanese currency in years.

The yen had been battered by years of weakness, plummeting to levels last seen in 1986 and raising concerns over rising inflation in Japan, financial market volatility, and wider implications for the global economy.

By the close of New York trading on Friday, the yen had strengthened to 157.40 against the US dollar, its strongest level since early May, after Japanese authorities bought yen and sold dollars during New York trading on Friday.

The intervention was a result of coordinated messaging from US and Japanese officials and growing signs that Washington is willing to actively support Tokyo's efforts to stabilise the yen.