US and Japan Unite to Defend Yen in Rare Joint Intervention

The US and Japan have taken joint action to defend the yen for the first time in 15 years.

In a rare move, Japanese Finance Minister Satsuki Katayama confirmed on Monday morning that Tokyo was working with Washington to lift the currency from its four-decade low.

The yen gained as much as 1.4% against the dollar during trading in Tokyo after the announcement, which sent a signal that Japan had a powerful partner in its bid to strengthen the currency.

US President Donald Trump described Washington's assistance as a sign of friendship between the two nations, but the move also served US interests by reducing concerns about Japanese exporters benefiting from a persistently weak yen and potentially pressuring the Treasury market if Japan were forced to sell some of its US bond holdings.