US and Japan Unite to Prop Up Yen

The United States and Japan have confirmed that they conducted a joint yen-buying intervention on Friday, marking their first coordinated action since 2011's earthquake in eastern Japan. The move aims to prevent a selloff in the yen and Japanese government bonds (JGBs) from causing global spillovers.

The intervention was worth as much as $36.58 billion, with the US Treasury Department participating alongside Japan's finance ministry. Finance Minister Satsuki Katayama stated that they will not hesitate to conduct further coordinated intervention if needed.

Analysts believe that the joint action is a sign of friendship and a strategic move to address concerns over extraordinary weakness in the yen that offsets the boost from US tariffs. The BOJ's June rate hike also failed to give the struggling currency lasting support.