States Have Confirmed a Rare, Coordinated Yen-buying Intervention to Halt the Currency's Slide to 40-Year Lows, With Tokyo Signaling It

The Japanese Ministry of Finance confirmed the joint action after President Donald Trump said on Sunday that Washington was helping to prop up the yen as a sign of friendship and to support the global economy. "They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan, Trump told reporters.

Analysts say the move underscores both nations' resolve to prevent global spillovers from a sell-off in the yen and Japanese government bonds, including pressure on already rising US Treasury yields. The dollar fell 0.2 percent to 157.07 yen after Trump's remarks, well off the 40-year high near 164 yen hit late last month, but it rose back to 157.70 yen after the Finance Ministry's statement. Japan has struggled to curb a relentless drop in its currency, which pushes up import prices and stokes inflation, hitting household wallets and Prime Minister Sanae Takaichi's approval ratings.

In its statement, the Finance Ministry said Friday's yen-buying intervention with the US Treasury Department "countered excessive volatility and disorderly movements in the Japanese yen in recent months. It added, "We will not hesitate to conduct further joint intervention. The joint action is the first since a 2011 coordinated effort to weaken the yen after the devastating earthquake in eastern Japan.

Tokyo may have sold as much as $58.97bn to buy yen when it intervened in New York markets on Thursday, Bank of Japan data indicated, before Friday's confirmed joint intervention. US Treasury Secretary Scott Bessent confirmed Friday's effort, saying on Sunday that Washington "will not hesitate to participate in further joint intervention. "We strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen, Bessent said on X, repeating his calls for further rate hikes by the Bank of Japan.

In line with those calls, the Bank of Japan on Friday offered its most explicit signal to date of an early rate hike, even as it kept policy steady. In a sign of broader coordination, South Korea also stepped in to buy its won on Thursday. Japan intervened in April and May, but the move triggered only a brief rebound. The Bank of Japan's June rate hike to a 31-year high of 1 percent also gave the currency little lasting boost."