US, Japan Unite to Prop Up Yen Amid Fresh 40-Year Low

The US and Japan have jointly intervened to prop up the yen in a rare move, marking their first joint intervention since 2011. The two countries acted together after the yen weakened to a fresh 40-year low.

According to both nations' finance ministries, they will not hesitate to conduct joint interventions in the future if needed. This highlights their efforts to prevent a sell-off in the yen and Japanese government bonds from affecting the global economy.

The US Treasury Secretary Scott Bessent stated that the intervention serves 'its national interests by offering the prospect of significant benefits at a low cost.'

Shigeto Nagai, head of Japan economics at Oxford Economics, noted that even if the actual amount of intervention is not large, the prolonged sense of vigilance regarding intervention will be effective in deterring speculators.