US and Japan Unite to Stem Yen's Slide

Japan and the US have announced joint action to stem the yen's decline to 40-year lows. The unprecedented move could reshape regional currency dynamics.

On Monday, Japan will confirm joint steps with the United States aimed at restraining the yen's fall, as Finance Minister Satsuki Katayama stated that Tokyo and Washington acted jointly in the currency market last week to curb the yen's excessive decline.

The Bank of Japan is signaling possible early rate hikes but maintains its current policy. The dollar ended Friday trading around 157.60 yen, retreating from a peak near 164 yen, the highest in years.