US and Japan jointly intervene to prop up yen in rare move
The US and Japan have conducted a rare joint intervention in currency markets to stabilize the yen after it hit a 40-year low. The move aims to curb excessive volatility and support Japan's economy amid interest rate disparities.
Why it matters
Coordinated currency intervention by major economies signals a significant effort to prevent global financial instability and manage trade imbalances.
Image source, Bloomberg via Getty Images Image caption, Japan's prime minister Sanae Takaichi met President Trump in March
Japan and the US have confirmed that they jointly intervened last week to halt a slide in the yen to a fresh 40-year low.
The joint intervention is the first since 2011, when both countries took coordinated action to weaken the yen after the devastating earthquake and tsunami that hit eastern Japan.
Both Japan's finance ministry and US Treasury Secretary Scott Bessent have said that they will not hesitate to conduct joint interventions in the future.
It highlights both countries' efforts to prevent a sell-off in the yen and Japanese government bonds from having an impact on the global economy, including helping to push up borrowing costs for Washington.
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