Japan and US Execute Coordinated Yen-Buying Intervention to Halt 40-Year Lows
The Japanese Ministry of Finance announced on Monday that Japan and the United States have executed a coordinated yen-buying intervention. The ministry confirmed that both nations stand ready to take further similar actions to halt the sharp depreciation of the Japanese currency, which recently plunged to a 40-year low.
This joint intervention marks the first coordinated move of its kind between the two countries since 2011, when they worked together to weaken the yen following the devastating Great East Japan Earthquake.
The Japanese Finance Ministry emphasized that Friday's yen-buying operation, conducted in close cooperation with the US Department of the Treasury, was a necessary step to counter the "excessive volatility and disorderly movements" witnessed in the currency market over recent months.
US Backing and Strategic Support
On Sunday, US President Donald Trump stated that America's assistance in supporting the yen serves as a "testament to friendship" and a crucial effort to help bolster the global economy.
Echoing this sentiment, US Treasury Secretary Scott Bessent affirmed Washington's strong backing for Japan's decisive actions. He signaled a firm commitment, noting that the United States "will not hesitate to participate in further joint interventions."
Bessent further added that, in the coming months, the US will consider expanding the size of the Federal Reserve’s repurchase agreement (Repo) facilities to provide temporary dollar liquidity. This strategic move would make it significantly easier for Tokyo to manage its liquidity needs without resorting to direct sell-offs of US Treasury bonds.