US and Japan Conduct Joint Intervention to Halt Yen's Decline
Washington and Tokyo intervened last week to halt a four-decade low in the yen, the first joint action of its kind since 2011.
The United States and Japan confirmed that last week they carried out a joint market intervention to stop the decline of the Japanese currency after the yen weakened to its lowest level in forty years.
Coordinated action for market stability
Authorities said the move is the first coordinated intervention of this kind since 2011, when the two countries acted together following the devastating earthquake and tsunami that struck eastern Japan.
The Ministry of Finance of Japan and U.S. Treasury official Scott Bessent said they would not hesitate to take joint steps again if conditions warrant, signalling a readiness to return to the market to counter disorderly moves.
Officials framed the intervention as an effort to prevent a wave of selling of the yen and Japanese government bonds from turning into a broader shock for the global economy — a disruption that could, among other consequences, raise borrowing costs for Washington.
Markets will be watching exchange-rate and bond-market moves closely in the coming days as investors assess whether the coordinated action brings durable calm or only a temporary pause in volatility.
Photo: press material from the event
