Japan, US step in to support yen, Tokyo keeps door open for more action
Japan and the United States have conducted a rare coordinated intervention in the foreign exchange market to stabilize the Japanese yen. Both nations have signaled their readiness for further joint actions to curb excessive currency volatility and support Japan's economic stability.
Why it matters
Coordinated currency intervention between major global economies is a significant move that impacts international trade, inflation, and global financial market stability.
After joining hands in a rare currency market intervention, the US and Japan have left the door open for more coordinated action, with Tokyo saying it is ready to step in again if yen continues to swing.In a statement issued on Monday, Japan's ministry of finance said it intervened in the foreign exchange market on Friday, July 31, buying yen in coordination with the US department of the treasury. The move was aimed at addressing what it described as excessive volatility and disorderly movements in the Japanese currency.The ministry said the intervention was undertaken under the framework of the Japan-US Finance Ministers' Joint Statement issued in September 2025.It also announced plans to use the US Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility in the future."Japan plans to utilize the Federal Reserve's "Foreign and International Monetary Authorities Repo Facility" (FIMA Repo Facility) in the future," it said.Emphasising that…
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