Japan Announces Joint Action with U.S. to Stabilize Yen Amid 40-Year Low Slide
Japan is set to announce coordinated action with the United States aimed at stabilizing the yen, which has fallen to a 40-year low against the dollar. Finance Minister Satsuki Katayama will reveal that Tokyo and Washington jointly intervened in currency markets last week through purchases of yen—a rare move not seen since 2011. The intervention follows repeated efforts by Japan earlier this year with limited success, as well as recent signals from the Bank of Japan (BOJ) for an early rate hike. The U.S. Treasury reportedly also participated in market operations to support the yen after expressing concerns over its undervaluation. South Korea joined the effort on Thursday by intervening in won markets. The dollar had briefly reached 164 yen, a level not seen since 1986, before retreating slightly. The coordinated action reflects growing international concern about currency volatility and inflationary pressures caused by Japan’s weak yen.
Topics: foreign exchange intervention U.S.-Japan coordination yen