US and Japan Unite to Halt Yen's 40-Year Slide

The US and Japanese governments have jointly intervened in the foreign exchange market to defend the value of the yen, which has reached a 40-year low. This is the first time since 2011 that the two countries have taken joint action in this manner. The intervention aims to lift the yen's value against the dollar.

The Bank of Japan and the US Treasury have been working together on this issue. Kazuo Ueda, Governor of the Bank of Japan, has signaled an early rate hike, which would help increase the value of the yen. Meanwhile, US Treasury Secretary Scott Bessent has stated that the yen's exchange rate is deeply undervalued.

The joint intervention involves selling dollars and buying yen in the foreign exchange market. The operation is ongoing, with Minister Katayama Satsuki set to officially announce the joint action on August 3rd. The Bank of Japan has been active in the market since July 30th, carrying out a solo intervention by heavily selling dollars and buying yen.