U.S. and Japan Conduct Coordinated Yen Intervention
Japan's Finance Ministry confirmed that it conducted a coordinated yen-buying intervention with the U.S. Treasury on Friday to address excessive volatility in the Japanese currency. The move, which saw the yen strengthen from around 163.73 per dollar to approximately 157.57 by Friday and remain stable at 157.70 Monday morning, was carried out under a joint agreement between Japan and the U.S. U.S. Treasury Secretary Scott Bessent confirmed the intervention in a statement, emphasizing that it aimed to counter disorderly yen movements. Both governments signaled their willingness to conduct similar actions in the future if needed. President Donald Trump also commented on the move as an act of friendship toward Japan and for global economic stability. Japan indicated its intent to use the Federal Reserve's FIMA repo facility in the future, allowing it access to short-term U.S. dollars by exchanging Treasury securities.
Topics: FX intervention Japan monetary policy U.S. Treasury yen