US and Japan Team Up to Support Weakening Yen

The US and Japan have coordinated to prop up the Japanese yen after it hit a 40-year low against the dollar. According to Finance Minister Satsuki Katayama, this action was taken 'pursuant to the U.S.-Japan Finance Ministers' Joint Statement issued in September 2025,' with the goal of countering excessive volatility and disorderly movements in the Japanese yen.

The intervention is likely to have a longer-lasting effect than Japan's previous unilateral interventions, but it will not be enough to reverse the trend of yen weakness. The two countries 'will not hesitate to conduct further joint intervention' if needed.

Japan used around $34 billion to intervene in the currency market to support the yen, with the US potentially providing temporary dollar liquidity through the FIMA Repo Facility.