US and Japan Confirm Rare Joint Intervention to Prop Up the Yen

Japan's Ministry of Finance confirmed on Monday that it carried out a coordinated yen-buying intervention with the US Treasury last Friday, marking the first joint operation by the two countries to support the Japanese currency since 1998. The move followed the yen's slide to its weakest level against the dollar in roughly four decades, reaching about 163.7 per dollar before strengthening to around 157 after the action. Finance Minister Satsuki Katayama said the operation was designed to counter excessive volatility and disorderly currency movements, and warned that Tokyo would not hesitate to intervene again. US Treasury Secretary Scott Bessent confirmed Washington's participation, saying the coordinated action countered disorderly yen moves and that the US supports Japan's efforts to correct what it views as a substantial undervaluation of the currency. President Donald Trump described the US involvement as a gesture of friendship toward an ally. Analysts noted that intervention backed by the US tends to be more effective, but cautioned that a durable recovery in the yen ultimately depends on tighter Bank of Japan policy rather than repeated market operations.