Japan and the United States carried out a coordinated intervention in foreign exchange markets last week aimed at supporting the weakening Japanese yen. Authorities from both countries confirmed the move, which had previously only been speculated about among traders. This was the first joint currency intervention by Tokyo and Washington since 2011.
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Yen sell-off threatened global markets
According to analysts, the coordinated intervention demonstrates both countries’ determination to prevent the sell-off of the Japanese currency and government bonds from causing broader shocks to global financial markets. Further weakening of the yen could also increase pressure on yields of U.S. government bonds, which are already at relatively high levels.
Japan’s Ministry of Finance stated that Friday’s intervention was a response to excessive volatility and disorderly movements in the yen’s exchange rate in recent months. Finance Minister Sachuki Katayama also declared that Japan would not hesitate to proceed with further coordinated intervention if the market situation requires it.
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Further joint intervention not ruled out
The intervention was also confirmed by U.S. Treasury Secretary Scott Bessent. According to him, the United States continues to closely monitor developments and remains in close contact with Japanese authorities. Washington is prepared to participate in further joint interventions to support the Japanese currency, according to his statement.
U.S. President Donald Trump stated that the United States is helping Japan stabilize the yen exchange rate as an expression of friendship between the two countries and an effort to support the global economy. Investors can also track developments in foreign exchange markets through the BITmarkets platform, which offers access to currency pairs and other global assets. In his comment, Trump also recalled the historic relations between the two nations, including the Japanese attack on Pearl Harbor in 1941.
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Source: ČTK
