Japan and US confirm rare joint intervention to prop up yen
Japan and the United States have jointly intervened to support the yen, which has fallen to 40-year lows. US President Trump confirmed the coordinated action as a sign of friendship and support for the global economy. Japan's Finance Ministry stated it remains ready to conduct further joint intervention if needed.
Japan and the United States have executed a rare coordinated intervention in currency markets to arrest the yen's decline to multi-decade lows. The Japanese Ministry of Finance confirmed the joint action following a public statement by US President Donald Trump, who characterized the support as a gesture of friendship and a measure to stabilize the global economy.
The yen had weakened significantly, reaching near 164 to the dollar in recent weeks before the intervention. Following Trump's announcement, the dollar initially fell to 157.07 yen, though it subsequently rose to 157.70 yen after Japan's official statement. According to Bank of Japan data, Tokyo may have deployed approximately $58.97 billion in yen-buying operations when it intervened in New York markets on Thursday, with Friday's action representing the confirmed joint effort with Washington.
Analysts note that the intervention reflects both nations' determination to prevent broader economic disruption from yen volatility and potential spillovers affecting Japanese government bonds and US Treasury yields. Japan has faced persistent currency weakness that increases import costs and fuels inflationary pressures on households, affecting domestic economic conditions and political approval ratings.
US Treasury Secretary Scott Bessent confirmed Washington's participation in the Friday intervention, stating that the United States will not hesitate to engage in further joint action. Bessent also reiterated calls for the Bank of Japan to implement additional interest rate increases to address what he characterized as substantial yen undervaluation. The Bank of Japan responded by signaling its most explicit indication yet of an imminent rate hike, even as it maintained its current monetary policy stance.
This marks the first coordinated US-Japan currency intervention since 2011, when the two countries jointly acted to weaken the yen following Japan's devastating earthquake. South Korea similarly intervened to support its won currency on Thursday, suggesting broader regional coordination on currency stability.
Bell tracks these organizations in depth — profiles, people, signals, and history. See them inside Bell →
191,000+ companies, mapped and refreshed continuously.