Japan, US verify joint intervention to to prop up weak yen

Japan’s finance ministry stated on Monday it had carried out a coordinated yen-buying operation with the US final Friday, a uncommon transfer geared toward stabilizing the Japanese foreign money after it plummeted to recent four-decade lows towards the dollar.

In a press release, Japan’s Finance Minister Satsuki Katayama stated the joint motion “countered excessive volatility and disorderly movements in the Japanese yen in recent months,” including that the ministry remained “attentive and in close communication” with the US Treasury.

Satsuki Katayama, Japan’s finance minister, speaks to members of the media, Tokyo, Japan, August 3, 2026. /VCG

US Treasury Secretary Scott Bessent additionally confirmed Friday’s effort in a social media publish on Sunday, echoing Katayama’s assertion to say each side “will not hesitate to participate in further joint intervention.”

The yen surged greater than 1% to 155.20 per dollar after the announcement, its strongest since early May, and nicely off the 40-year low close to 164 hit final month. 

The joint intervention was the primary following 2011’s coordinated motion to weaken the yen following the earthquake in japanese Japan.

Wei Liang, a researcher on the Institute of International Technology and Economy beneath the State Council’s Development Research Center, instructed CMG that the current rise in long-term US Treasury bond yields mirrored considerations over US fiscal sustainability. He stated the US may additionally be involved that Japan’s efforts to stabilize the yen might result in large-scale promoting of dollar property, placing additional strain on monetary stability.

This offers the US a cause to coordinate with Japan on foreign money intervention, he famous.

Japanese 10,000 yen banknotes organized side-by-side, Kawasaki, Kanagawa, Japan, April 18, 2025. /VCG

Some analysts questioned whether or not the most recent intervention measures can offset the structural components weighing on the yen, together with increased gas prices pushed by the Middle East battle and the still-significant rate of interest hole between Japan and the US.

“The announcement effect of joint intervention is much bigger than solo action by Japan,” stated Tsuyoshi Ueno, a senior economist at NLI Research Institute.

“But the fundamentals driving yen weakness haven’t changed, so we likely won’t see one-sided yen rises from this intervention,” he added.

(With enter from Reuters)

Source: CGTN