US, Japan intervene jointly to lift yen after 40-year low
Why it matters: The rare move aimed to curb volatility that could spill into Japanese bond markets and raise US borrowing costs.
The United States and Japan jointly stepped into currency markets last week to support the yen after it slid to a 40-year low against the dollar, marking their first coordinated intervention since 2011. Japan’s Finance Ministry said the action countered excessive volatility and disorderly moves in recent months, while US Treasury Secretary Scott Bessent backed steps to address what he called the yen’s substantial undervaluation. Bank of Japan data suggested Tokyo may have sold nearly $59 billion to buy yen on Thursday, ahead of Friday’s confirmed joint move with Washington. The yen later traded near 157 to the dollar, off last month’s low around 164.