US, Japan Join Forces to Prop Up Yen

Japan and the United States conducted joint yen-buying intervention, signaling further action if needed to stabilize the Japanese currency. This rare bilateral move comes after the yen hit a 40-year low against the US dollar.

The Finance Ministry in Japan confirmed the coordinated effort with the US Treasury Department on Monday, stating that it 'countered excessive volatility and disorderly movements in the Japanese yen in recent months.'

Finance Minister Satsuki Katayama told reporters that Japan would not hesitate to conduct further joint intervention if necessary.

The move has put the spotlight on the Bank of Japan (BOJ), which may consider a rate hike as soon as its next policy meeting in September. Analysts say this could help arrest yen falls and support the Japanese economy.