US-Japan Intervention Sparks Criticism from Japanese Media

The US and Japan's joint intervention in the yen market has been met with criticism from Japanese media, with some calling it a 'currency defeat'. According to Nikkei, Japan should be concerned about losing control over its currency, as it was unable to stem the yen's decline on its own. The article points out that this is not the first time the US and Japan have intervened together; in June 1998, they collaborated to buy up the yen intensively during a financial crisis.

The Nikkei notes that while the circumstances were different then, the outcome was similar: the US provided help to stabilize the yen. Atsushi Mimura, Japan's vice minister of finance for international affairs, called this 'the completed form of the U.S.-Japan monetary alliance'. However, other Japanese officials have been less optimistic about the current situation.

The Nikkei argues that the recent yen weakness is due to slow interest-rate increases and loosened fiscal discipline in Japan. The article criticizes the government for failing to produce the right policies, despite repeated warnings and market interventions by Finance Minister Satsuki Katayama and Vice Minister Mimura.