U.S. Scott Bessent, Japan confirm intervention
The U.S. Treasury and Japan's Finance Ministry have conducted a coordinated intervention to stabilize the Japanese yen. This rare joint action aims to curb excessive volatility and address the currency's significant undervaluation.
Why it matters
Coordinated currency intervention between major economies signals a significant shift in global monetary policy and market stabilization efforts.
Japan's Finance Ministry said Monday it had conducted a coordinated yen-buying operation with the U.S. Treasury on Friday, marking a rare joint move by the two allies to stem sharp swings in the Japanese currency.
Tokyo signaled it was prepared to act again if needed, saying it "will not hesitate to conduct further coordinated interventions in the future" and remains in close communication with the U.S. Treasury . Finance Minister Satsuki Katayama also stressed that Japan "remains attentive and in close communication with counterparts at U.S. Treasury."
The Japanese yen had hit 163.73 against the greenback on Thursday last week, and strengthened to 157.57 on Friday. It was trading at 157.70 per dollar on Monday. The yen's weakness has become an increasing concern for Tokyo, with the currency recently falling to its lowest level in roughly four decades against the dollar .
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