US and Japan Unite to Prop Up Yen Amid Global Market Volatility

The US Treasury and Japan's Ministry of Finance joined forces last Friday to stabilize the Japanese yen, which had fallen to its lowest level in 40 years.

The move was motivated by concerns over the impact on the US financial system, particularly the potential for higher interest rates and a decline in the value of US Treasury bonds.

Japan is now the largest foreign holder of US Treasury bonds, with over $1.2 trillion invested, and holding another $1.2 trillion in US equities and around $300 billion in corporate bonds.