US and Japan Team Up to Stem Yen's Slide

Japan and the US have confirmed carrying out a joint foreign exchange intervention to halt the yen's sharp depreciation. The Japanese currency has fallen to a fresh 40-year low against the US dollar, sparking concern over its potential impact on the global economy and financial markets.

The coordinated action is the first of its kind since 2011, when both countries intervened following Japan's devastating earthquake and tsunami. According to Bank of Japan data, Tokyo may have sold nearly $59 billion worth of US dollars to purchase yen during an intervention in New York trading on Thursday, ahead of Friday's confirmed joint operation with Washington.

US Treasury Secretary Scott Bessent said both governments remain prepared to undertake additional coordinated interventions if necessary to prevent excessive volatility in the foreign exchange market. Shigeto Nagai, Head of Japan Economics at Oxford Economics, stated that Washington's participation reflected its own economic interests.