US, Japan Intervene Jointly to Boost Yen From 40-Year Low
Officials said the rare move countered disorderly yen weakness, and analysts estimated Japan’s intervention at up to $52.8 billion.
- The U.S. dollar weakened sharply against the Japanese yen following a coordinated market intervention by both countries, the first joint action since 2011 to support the yen and counter excessive volatility.
- Prior to the intervention, the yen fell to a 40-year low near 164 per dollar, but joint purchases by Japan and the U.S. strengthened it to about 155, its strongest level since early May.
- Officials from Japan and the U.S., including Finance Minister Satsuki Katayama and Treasury Secretary Scott Bessent, pledged readiness for further joint interventions if needed to stabilize the yen.
- The intervention raised expectations for a Bank of Japan interest rate hike, though analysts noted that underlying causes like interest rate differences remain unchanged, indicating a potentially temporary effect.
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356 Articles
US-Japan yen intervention is also a tug of war
NEW YORK — A pointed question now hangs over global markets as the US Treasury links arms with Japan to confront yen bears: who actually holds the leverage — Washington or Tokyo? Treasury Secretary Scott Bessent plainly wants his Japanese counterpart, Finance Minister Satsuki Katayama, to treat this joint intervention as a privilege — to feel humbled, […] The post US-Japan yen intervention is also a tug of war appeared first on Asia Times.
For the first time in thirty years, the Federal Reserve has intervened to defend the yen, in free fall. Beyond assistance to a "friend" government, it is for the US authorities to defend the status of the dollar and the "exorbitant privilege" that it enjoys as the only global reserve currency.
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