US-Japan Pact Halts Yen's Slide with Joint Intervention

Tokyo and Washington have conducted their first joint yen-buying intervention since 2011 to halt the currency's slide to fresh 40-year lows.

The move, which was confirmed by Japan's Finance Ministry on Monday, aims to prevent a selloff in the yen and Japanese government bonds (JGBs) from causing global spillovers, such as adding upward pressure on already rising U.S. Treasury yields.

President Donald Trump said over the weekend that the United States was helping Japan prop up the yen as a sign of friendship and to help the world economy.

The joint intervention followed months of preparation by the two nations, with Finance Minister Satsuki Katayama saying they had held 10 talks on exchange rates since January, including an online meeting in late June with U.S. Treasury Secretary Scott Bessent.