{"id":148746,"date":"2026-08-03T07:02:55","date_gmt":"2026-08-03T07:02:55","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/us-and-japan-take-action-to-prop-up-yen-in-rare-joint-move\/"},"modified":"2026-08-03T07:02:55","modified_gmt":"2026-08-03T07:02:55","slug":"us-and-japan-take-action-to-prop-up-yen-in-rare-joint-move","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/us-and-japan-take-action-to-prop-up-yen-in-rare-joint-move\/","title":{"rendered":"US and Japan take action to prop up yen in rare joint move"},"content":{"rendered":"

Japan and the US have confirmed that they jointly intervened last week to halt a slide in the yen after it weakened to a fresh 40-year low.<\/strong><\/p>\n

The joint intervention is the first since 2011, when both countries took coordinated action to weaken the yen after the devastating earthquake and tsunami that hit eastern Japan.<\/p>\n

Both Japan\u2019s Ministry of Finance and US Treasury Secretary Scott Bessent have said that they will not hesitate to conduct more joint interventions in the future.<\/p>\n

It highlights both countries\u2019 efforts to prevent a sell-off in the yen and Japanese government bonds from having an impact on the global economy, including potentially helping to push up borrowing costs for Washington.<\/p>\n

\u201cThe United States agreed to participate in the coordinated intervention because it serves its national interests by offering the prospect of significant benefits at a low cost,\u201d Shigeto Nagai, head of Japan economics at Oxford Economics told the BBC.<\/p>\n

The two countries are expected to continue to intervene \u201cintermittently in a coordinated manner for some time\u201d, he added.<\/p>\n

\u201cEven if the actual amount of intervention is not particularly large, the prolonged sense of vigilance regarding intervention will be effective in deterring speculators.\u201d<\/p>\n

The yen is historically weak mainly due to Japan having much lower central bank interest rates than other major economies like the US. That makes the Japanese currency less attractive to international investors.<\/p>\n

The Bank of Japan last raised interest rates in June, as it increased its main rate to 1% \u2013 the highest level since September 1995. In comparison, the US Federal Reserve\u2019s benchmark rate is in a range of 3.50% to 3.75%.<\/p>\n

Japan also faces other issues including a decades-long slide in its working-age population, low productivity and a heavy reliance on energy imports that are priced in US dollars.<\/p>\n

On Monday, Japan\u2019s finance ministry said Friday\u2019s intervention with the US Treasury Department \u201ccountered excessive volatility and disorderly movements in the Japanese yen in recent months\u201d.<\/p>\n

The \u201ccoordinated foreign exchange actions countered disorderly yen movements,\u201d Bessent said in a social media post.<\/p>\n

\u201cWe strongly support Japan\u2019s decisive market and monetary steps to correct the substantial undervaluation of the yen,\u201d he added.<\/p>\n

\u201cThey have a weakening yen, and they wanted a little bit of help. And we\u2019re always there for Japan,\u201d US President Donald Trump told reporters on Sunday.<\/p>\n

The dollar fell by 0.2% to 157.07 yen after Trump\u2019s comments, well off the 40-year high of 164 last month, but rose back to 157.70 yen after the Japanese finance ministry\u2019s statement.<\/p>\n

Bank of Japan data indicated that Tokyo may have sold almost $59bn of US dollars to buy yen when it intervened in New York markets on Thursday, before Friday\u2019s confirmed joint intervention with Washington.<\/p>\n

The US has not confirmed the size of its intervention but a Reuters photograph of a notepad in front of Bessent during a a cabinet meeting on Friday read: \u201cTo Do: Buy Japanese Yen $5-10 bil\u201d.<\/p>\n

The post US and Japan take action to prop up yen in rare joint move<\/a> appeared first on KBC Digital<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Japan and the US have confirmed that they jointly intervened last week to halt a slide in the yen after it weakened to a fresh 40-year low. The joint intervention is the first since 2011, when both countries took coordinated action to weaken the yen after the devastating earthquake and tsunami that hit eastern Japan. […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-148746","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/148746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=148746"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/148746\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=148746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=148746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=148746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}