Japan and US Conduct Joint Currency Intervention to Support Yen

Japanese Finance Minister Satsuki Katayama stated that Japan and the United States conducted a joint intervention in the foreign exchange market on Friday to support the yen by purchasing the Japanese currency. The move marks the first such coordinated action in 15 years, and both nations indicated they are prepared to cooperate again if necessary. “This joint action was taken based on the US-Japan Joint Statement of Finance Ministers issued in September 2025 and to counter the extreme volatility and abnormal movements of the yen in recent months,” Katayama said in a statement on Monday. “The Ministry of Finance remains vigilant and maintains close communication with the US Department of the Treasury. We will not hesitate to conduct further joint intervention.” The intervention, carried out during the New York trading session on Friday, came after the yen plunged to 163.99 per dollar on 23 July, its weakest level in over 39 years. US President Donald Trump indicated on Sunday that the US government had intervened to buy yen at the request of Prime Minister Sanae Takaichi’s administration, telling reporters the action would bring economic benefits to the United States. The two countries previously implemented similar measures to curb a surge in the yen following the devastating earthquake and tsunami that struck northeastern Japan in March 2011. During Friday’s New York session, the yen strengthened to the lower 157 range against the dollar, with Japanese government sources confirming the monetary authorities had bought yen and sold dollars. The move followed a sharp rise of nearly 5 points in the yen to around 157 per dollar within roughly 50 minutes on Thursday, before it retreated back to the 160 level. US Treasury Secretary Scott Bessent stated on Thursday that the yen “seems to be undervalued.” Reuters reported that a photograph taken during a Trump cabinet meeting on Friday showed a task list on Bessent’s desk indicating plans for the US to buy between $5 billion and $10 billion worth of yen.