U.S. and Japan Conduct First Joint Yen Intervention Since 2011
The U.S. and Japanese governments confirmed their first joint intervention to support the yen in nearly two decades, following a sharp decline that brought it close to 40-year lows against the dollar. The coordinated move involved Japan selling up to $60 billion of dollars while the U.S. contributed between $5 billion and $10 billion. Both sides have pledged further action if needed. The intervention has raised concerns about potential impacts on U.S. bond yields, as fears emerged that Japan might liquidate its holdings in Treasuries to fund dollar purchases. However, a Federal Reserve repo facility using Japanese bonds as collateral was activated to mitigate this risk. Meanwhile, oil prices dropped over 5% due to reduced tensions between the U.S. and Iran after President Trump paused bombing operations. In equities, Asian markets opened lower with South Korea's KOSPI falling more than 5%. In contrast, Wall Street futures rose ahead of a key employment report later in the week.
Tickers: $AZN
Topics: central bank policy FX markets U.S.-Japan relations yen