US and Japan Unite to Stem Yen's Slide
Japan and the US have confirmed they conducted joint yen-buying intervention to halt the currency's slide to fresh 40-year lows. The move, which is a rare bilateral action, was done to counter excessive volatility in the Japanese yen.
The US Treasury Department told banks it might intervene in the yen market last Friday, and Bank of Japan data showed that Japan may have sold as much as $58.97 billion to buy yen on July 30. This is the first joint intervention since 2011, when the two countries took coordinated action to weaken the yen after the earthquake in eastern Japan.
Japan's Ministry of Finance said it will not hesitate to conduct further joint intervention with the US. The yen has been struggling to curb its relentless drop, which pushes up import prices and stokes broader inflation, hitting households' wallets and Prime Minister Sanae Takaichi's public approval ratings.