Japan and US confirm rare joint intervention to prop up yen
✓US President Donald Trump says helping to bolster the Japanese currency is a sign of friendship.
Japan and the United States have confirmed a rare, coordinated yen-buying intervention to halt the Japanese currency’s slide to 40-year lows, with Tokyo signalling it is willing to take further action if needed.
The Japanese Ministry of Finance confirmed the joint intervention after a statement by US President Donald Trump on Sunday announced that Washington was helping to prop up the yen as a sign of friendship and to support the global economy.
“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” Trump said in response to a reporter’s query about why the US is helping to support the currency.
Analysts say the intervention underscores both countries’ resolve to prevent global spillovers from a sell-off in the yen and Japanese government bonds, including by adding pressure on already rising US Treasury yields.
The dollar fell 0.2 percent to 157.07 yen after Trump’s remarks, well off the 40-year high near 164 yen hit late last month, but it rose back to 157.70 yen after the Japanese Finance Ministry’s statement.
Japan has been struggling to curb a relentless drop in its currency that pushes up import prices and stokes broader inflation, hitting household wallets and Prime Minister Sanae Takaichi’s approval ratings.
In its statement, Japan’s Finance Ministry said Friday’s yen-buying intervention with the US Treasury Department “countered excessive volatility and disorderly movements in the Japanese yen in recent months”.
“The Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,” it added. “We will not hesitate to conduct further joint intervention.”
The joint intervention is the first since a 2011 coordinated action to weaken the yen after the devastating earthquake in eastern Japan.
Tokyo may have sold as much as $58.97bn to buy yen when it intervened in New York markets on Thursday, Bank of Japan data indicated, before Friday’s confirmed joint intervention with Washington.
US Treasury Secretary Scott Bessent also confirmed Friday’s effort, noting on Sunday that Washington “will not hesitate to participate in further joint intervention”.
“We strongly support Japan’s decisive market and monetary steps to correct the substantial undervaluation of the yen,” Bessent said in a separate statement on X, repeating his calls for further interest rate hikes by the Bank of Japan.
In line with Bessent’s repeated calls for higher Japanese interest rates, the Bank of Japan on Friday offered its most explicit signal to date of an early rate hike, even as it kept monetary policy steady.
In a sign of broader policy coordination, South Korea also stepped in to buy its won currency on Thursday.
Japan intervened in April and May, buying yen, but the move triggered only a brief rebound. The Bank of Japan’s June rate hike to a 31-year high of 1 percent also gave the struggling currency little lasting boost.
Read the full story at BBC ↗ · Al Jazeera ↗
Japan and the United States confirmed a coordinated intervention to purchase yen on Friday, halting a multi-month currency slide to 40-year lows. US President Trump characterized the support as a gesture of friendship; US Treasury Secretary Scott Bessent described it as correcting 'substantial undervaluation' of the yen. Japan's Finance Ministry said the action countered 'excessive volatility and disorderly movements' and signalled readiness for further joint intervention. The Bank of Japan offered its clearest signal yet of an imminent rate hike the same day. Tokyo may have deployed as much as $58.97 billion in earlier unilateral intervention on Thursday. This marks the first US-Japan joint currency intervention since 2011. Analysts note the coordinated effort reflects both governments' concern about spillover effects on Japanese government bonds and US Treasury yields from continued yen weakness and capital outflows.
Read the full story at BBC ↗ · Al Jazeera ↗
US President Donald Trump says helping to bolster the Japanese currency is a sign of friendship.
Japan and the United States have confirmed a rare, coordinated yen-buying intervention to halt the Japanese currency’s slide to 40-year lows, with Tokyo signalling it is willing to take further action if needed.
The Japanese Ministry of Finance confirmed the joint intervention after a statement by US President Donald Trump on Sunday announced that Washington was helping to prop up the yen as a sign of friendship and to support the global economy.
“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” Trump said in response to a reporter’s query about why the US is helping to support the currency.
Analysts say the intervention underscores both countries’ resolve to prevent global spillovers from a sell-off in the yen and Japanese government bonds, including by adding pressure on already rising US Treasury yields.
The dollar fell 0.2 percent to 157.07 yen after Trump’s remarks, well off the 40-year high near 164 yen hit late last month, but it rose back to 157.70 yen after the Japanese Finance Ministry’s statement.
Japan has been struggling to curb a relentless drop in its currency that pushes up import prices and stokes broader inflation, hitting household wallets and Prime Minister Sanae Takaichi’s approval ratings.
In its statement, Japan’s Finance Ministry said Friday’s yen-buying intervention with the US Treasury Department “countered excessive volatility and disorderly movements in the Japanese yen in recent months”.
“The Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,” it added. “We will not hesitate to conduct further joint intervention.”
The joint intervention is the first since a 2011 coordinated action to weaken the yen after the devastating earthquake in eastern Japan.
Tokyo may have sold as much as $58.97bn to buy yen when it intervened in New York markets on Thursday, Bank of Japan data indicated, before Friday’s confirmed joint intervention with Washington.
US Treasury Secretary Scott Bessent also confirmed Friday’s effort, noting on Sunday that Washington “will not hesitate to participate in further joint intervention”.
“We strongly support Japan’s decisive market and monetary steps to correct the substantial undervaluation of the yen,” Bessent said in a separate statement on X, repeating his calls for further interest rate hikes by the Bank of Japan.
In line with Bessent’s repeated calls for higher Japanese interest rates, the Bank of Japan on Friday offered its most explicit signal to date of an early rate hike, even as it kept monetary policy steady.
In a sign of broader policy coordination, South Korea also stepped in to buy its won currency on Thursday.
Japan intervened in April and May, buying yen, but the move triggered only a brief rebound. The Bank of Japan’s June rate hike to a 31-year high of 1 percent also gave the struggling currency little lasting boost.
Read the full story at BBC ↗ · Al Jazeera ↗
Japan and the United States conducted a rare joint yen-buying intervention on Friday The yen had fallen to 40-year lows against the dollar This is the first coordinated US-Japan intervention since 2011, after the eastern Japan earthquake US President Trump said the move was a sign of friendship and to support the global economy Japan's Finance Ministry stated the intervention countered 'excessive volatility and disorderly movements' in the yen Both countries signalled willingness to conduct further joint intervention if needed Tokyo may have sold as much as $58.97 billion to buy yen on Thursday in unilateral action The Bank of Japan offered its most explicit signal to date of an early rate hike on Friday while keeping policy steady A weakening yen pushes up import prices and stokes inflation, affecting household wallets Analysts say the intervention underscores resolve to prevent global spillovers from a yen sell-off and pressure on US Treasury yields The joint move reflects broader policy coordination, evidenced also by South Korea's won-buying intervention on Thursday
Read the full story at BBC ↗ · Al Jazeera ↗
- Japan and the US conducted a rare joint intervention to buy yen on Friday, the first coordinated action since 2011, as the currency fell to 40-year lows against the dollar
- US President Trump and Treasury Secretary Bessent framed the move as supporting a friend and stabilizing the global economy; Japan's Finance Ministry stated it countered 'excessive volatility and disorderly movements'
- Japan has struggled to stem yen weakness that raises import prices and inflation; both countries signalled willingness to intervene further if needed
- The Bank of Japan signalled an early rate hike on the same day; South Korea also bought its won currency on Thursday