US and Japan Unite to Prop Up Sliding Yen

The United States and Japan have jointly intervened in the currency market to prop up the yen, which has been sliding to fresh 40-year lows. This is the first coordinated action between the two countries since 2011's intervention following the devastating earthquake in eastern Japan.

According to a statement from Japan's finance ministry, the joint intervention was done to counter excessive volatility and disorderly movements in the Japanese yen in recent months. Finance Minister Satsuki Katayama said that they will not hesitate to conduct further coordinated intervention if necessary.

The move is seen as a sign of friendship between the two countries, with President Donald Trump stating on Sunday that the US was helping Japan prop up the yen. It also aims to address concerns over extraordinary weakness in the yen that offsets the boost from Trump's tariffs.

The joint intervention appears to be effective, with the yen surging more than 1% to 155.20 per dollar after the announcement. Analysts say that this move is a done deal for a rate hike by the Bank of Japan as soon as its next policy meeting in September.