US, Japan Intervene Jointly to Boost Yen From 40-Year Low
Officials said the move countered excessive volatility and disorderly yen declines, and the yen strengthened more than 1% after the confirmation.
- On Monday, Japanese Finance Minister Satsuki Katayama will announce that Tokyo and Washington took joint action in the currency market to arrest the yen's slide to 40-year lows.
- Treasury Secretary Scott Bessent's notepad on Friday displayed "Buy Japanese Yen $5-10 bil," confirming U.S. involvement in the first joint intervention since 2011.
- The Ministry of Finance posted it has "a broad range of tools to address market liquidity needs," including Fed repurchase facility access that allows Japan to raise dollar liquidity without selling U.S. Treasuries.
- Economy Minister Minoru Kiuchi said Sunday the government must "maintain market trust in Japan's fiscal sustainability," highlighting officials' coordination to manage shared inflation risks.
- The Bank of Japan signaled a likely rate hike soon after the intervention, though critics warn Japan faces constraints if selling Treasuries to fund continued action triggers a Treasury selloff.
320 Articles
320 Articles
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.
Why the US and Japan Moved to Support the Yen – and What It Means for Global Markets
An unexpected alignment between the world's two largest economies has triggered a sharp shift in the euro's exchange rate and drawn renewed attention to vulnerabilities within the U.S. debt system. US and Japan Support the Yen to Ease Pressure on Debt Markets For the first time in 15 years, the United States and Japan reportedly carried out large-scale purchases of the Japanese yen on the foreign exchange market, using the euro in the transactio…
Top Strategist: Japan Just Unleashed a Historic Yen Intervention. Here’s What Comes Next
Japan and the US just pulled off a coordinated currency intervention that sidestepped the one move markets feared most, and a top fixed income strategist at State Street says it may have permanently shifted the direction of the yen.
It is the first joint action since 2011 and one of the rare times that the Federal Reserve enters the foreign exchange market. It is concerned that the weakness of the Japanese currency forces the sale of public debt and pressures interest rates
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