US and Japan Unite to Support Yen Amid Excessive Volatility
The US and Japan have reaffirmed their commitment to supporting the yen after jointly intervening in the currency market last week. The intervention, which took place on July 31, aimed to stabilize the yen and counter excessive volatility.
Japanese Finance Minister Satsuki Katayama stated that the operation was carried out in accordance with a joint statement issued by the US and Japanese finance ministers in September last year.
The intervention marked the first jointly acknowledged foreign-exchange intervention by the US and Japan since March 2011, and it is also the first coordinated US action to strengthen the yen since 1998. The yen has strengthened from nearly ¥164 per dollar at its weakest point to around ¥160.2 following the intervention.
US Treasury Secretary Scott Bessent confirmed the action, saying Washington supported Japan's efforts to correct what he described as a substantial undervaluation of the yen.