US-Japan Alliance Defends Yen Against Speculative Bets

The US and Japan have coordinated their efforts to defend the yen against speculative bets, marking a rare public alignment between the two governments on currency issues.

This joint effort was preceded by months of preparation and closer-than-usual coordination between the two governments over exchange-rate policy.

Japan has attempted to slow sharp yen declines through unilateral intervention in the past, but those actions failed to establish lasting support for the currency. This time, backing from US Treasury Secretary Scott Bessent for a stronger yen provided Japanese officials with additional support.