US, Japan Intervene Jointly to Boost Yen From 40-Year Low
The move marked the first joint U.S.-Japan yen intervention since 1998 and pushed the dollar down to about 156 yen, officials said.
- The U.S. dollar weakened sharply against the Japanese yen following a coordinated market intervention by both countries, the first joint action since 2011 to support the yen and counter excessive volatility.
- Prior to the intervention, the yen fell to a 40-year low near 164 per dollar, but joint purchases by Japan and the U.S. strengthened it to about 155, its strongest level since early May.
- Officials from Japan and the U.S., including Finance Minister Satsuki Katayama and Treasury Secretary Scott Bessent, pledged readiness for further joint interventions if needed to stabilize the yen.
- The intervention raised expectations for a Bank of Japan interest rate hike, though analysts noted that underlying causes like interest rate differences remain unchanged, indicating a potentially temporary effect.
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418 Articles
The move to support the Japanese currency without weakening the US dollar. But according to the Financial Times the decision would have been made without confronting the European Central Bank, causing the irritation of Frankfurt
According to the Financial Times, the president of the ECB Christine Lagarde and US Treasury Secretary Scott Bessent would only be confronted after the historic US intervention to strengthen the yen. In the corridors of the Eurotower there is talk of an "unprecedented violation of the long-standing conventions on cooperation between monetary authorities"
The yen has recently reached its lowest level compared to the US dollar since 1985. It is not only a Japanese problem. It is also an American problem.
Japanese Yen gathers strength to near 157.50 on US-backed intervention
The USD/JPY pair trades in negative territory near 157.65 during the early Asian trading hours on Thursday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) following a coordinated currency intervention by the United States (US) and Japan. The US Initial Jobless Claims report will be published later on Thursday. Earlier this week, Japan’s Finance Ministry Satsuki Katayama said that Tokyo and Washington conducted coordinated Yen-b…
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