US-Japan Team Up to Support Yen, Vow Further Action

Japan's Finance Ministry confirmed on Monday that it conducted a joint yen-buying intervention with the US, marking the first such coordinated action since 2011. The move aims to prevent the yen's slide to fresh 40-year lows from causing global spillovers.

US Treasury Secretary Scott Bessent said Washington 'will not hesitate to participate in further joint intervention' and that it 'strongly supports Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen.'

The joint intervention is seen as a sign of the strong alliance between the two countries, with Japan's top currency diplomat Atsushi Mimura stating that 'we will continue to align (currency policy) with the Bank of Japan's monetary policy.'

However, analysts doubt whether the latest round of action can counter structural factors driving down the yen, such as rising fuel costs from the Middle East conflict and interest rate differentials.