US and Japan Unite for Joint Yen Intervention

The United States and Japan have confirmed that they conducted joint yen-buying intervention to halt the yen's slide to fresh 40-year lows. The move is a rare bilateral action, with the last one taking place in 2011 after the devastating earthquake in eastern Japan.

The Japanese Ministry of Finance said that the intervention 'countered excessive volatility and disorderly movements' in the yen, which has been falling due to rising costs from the Middle East conflict and still wide interest rate differentials between Japan and the US.

US Treasury Secretary Scott Bessent confirmed the effort, stating that Washington 'will not hesitate to participate in further joint intervention.' The remarks put the spotlight on the Bank of Japan, which last week kept rates on hold but signaled scope for a rate hike as soon as its next policy meeting in September.