Japan Announces Joint Yen Intervention with U.S.
Japanese Finance Minister Satsuki Katayama is set to announce joint action between Tokyo and Washington aimed at stabilizing the yen amid its decline to a 40-year low. The intervention, expected to be the first of its kind since 2011, follows reports that Japan has already engaged in large-scale yen-buying operations worth up to $58.97 billion. The move comes as the Bank of Japan signals potential rate hikes and amid growing U.S.-Japan coordination on monetary policy. The U.S. Treasury also reportedly informed banks they should be prepared for future intervention, with Secretary Scott Bessent noted taking notes suggesting yen purchases. A rare English-language post by Japan’s Ministry of Finance emphasized its readiness to use tools like the Fed's repurchase facility. The joint effort reflects concerns over a widening interest rate differential and rising U.S. bond yields, which could be exacerbated if Tokyo were forced to sell large amounts of Treasuries to fund further intervention.
