Japan conducts currency intervention to stem yen's fall vs. dollar: source
Japanese authorities have intervened in the foreign exchange market to support the yen following its decline to a 39-year low against the U.S. dollar. The move, which appears to have U.S. government support, aims to curb excessive currency volatility.
Why it matters
Currency intervention by a major economy like Japan can significantly impact global trade balances and international investment flows.
TOKYO (Kyodo) -- Japanese authorities intervened in the foreign exchange market on Thursday to buy the yen and sell the U.S. dollar, a government source said, a move that came after the Japanese currency had been trading around its weakest level in more than 39 years.
The latest move has apparently been supported by the U.S. government, with Treasury Secretary Scott Bessent saying Thursday the yen "seems very undervalued." The last time Japanese authorities intervened in the currency market was between April and May.
Japanese Finance Minister Satsuki Katayama on Friday declined to comment on whether Japanese authorities had stepped in, but told reporters, "We are always acting with vigilance."
The country's top currency diplomat, Atsushi Mimura, also did not comment on a possible foray into the market but said authorities "are gaining U.S. assistance beyond psychological support."
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