Japan and US confirm rare joint intervention to prop up yen

Lead

The United States and Japan have confirmed that they carried out a rare coordinated intervention last week to halt the slide of the Japanese yen, which had fallen to a 40-year low against the US dollar. The move, the first joint intervention since 2011, briefly lifted the yen to a three-month high, though analysts caution that the currency's rebound may be fragile.

Coverage Comparison

The intervention was first reported by the Financial Times on Friday, according to France 24, which said the US Treasury had jointly intervened with Japan to prop up the yen for the first time in nearly three decades. On Sunday, US President Donald Trump confirmed the move, calling it a "signal of friendship" that would financially benefit the US and the world economy. The Guardian reported that Trump told reporters: "They have a weakening yen, and they wanted a little bit of help. And we're always there for Japan."

Japan's Ministry of Finance also confirmed the intervention on Monday, stating that it had "countered excessive volatility and disorderly movements in the Japanese yen in recent months." The ministry added that it "will not hesitate to conduct further joint intervention."

Key Claims

• The US and Japan staged a coordinated intervention to halt the yen's slide after it fell to a 40-year low against the US dollar. This was reported by Al Jazeera, BBC, and The Guardian.
• The yen had slumped to a four-decade low of almost 164 yen to the US dollar before the intervention. South China Morning Post reported the currency reached almost 164, while The Guardian cited a 40-year low of almost ¥164. Al Jazeera reported the yen slid to 163 against the dollar, its weakest since 1986.
• The intervention briefly lifted the yen to a three-month high. The Guardian reported the yen strengthened to ¥155 on Monday, its highest level since early May. South China Morning Post noted it reached 155.2 on Friday before weakening.
• This was the first joint intervention since 2011. Al Jazeera, BBC, and The Guardian all reported that the last coordinated action was in 2011, following the Tohoku earthquake and tsunami.
• US Treasury Secretary Scott Bessent said the US "will not hesitate to participate in further joint intervention," as reported by BBC and The Guardian.
• US President Donald Trump said the intervention was to help Japan and prevent a widening trade deficit. South China Morning Post reported Trump said his administration bought the yen to help Japan and prevent a widening in the trade deficit, which reached $63.9 billion last year. France 24 reported Trump's comments as a "signal of friendship" and beneficial to the global economy.

Perspectives

Japan's Ministry of Finance said the intervention "countered excessive volatility and disorderly movements in the Japanese yen in recent months," and that it remains "attentive and in close communication with our counterparts at the U.S. Treasury."

US President Donald Trump said on Sunday: "Because we have a good relationship with Japan." He described the move as a "signal of friendship" and said it would bring "financial benefit" to the US and be "good for the world economy." He also noted, "We're always there for Japan."

US Treasury Secretary Scott Bessent said Washington "will not hesitate to participate in further joint intervention."

Analysts offered mixed assessments. Shigeto Nagai, head of Japan economics at Oxford Economics, told the BBC that the US agreed to participate because it "serves its national interests by offering the prospect of significant benefits at a low cost." He expected continued intermittent coordinated intervention, noting that "the prolonged sense of vigilance regarding intervention will be effective in deterring speculators."

Lee Hardman, a currency analyst at MUFG bank, said "the threat of further joint intervention and a faster pace of BoJ hikes" could influence the yen's trajectory.

Matthew Ryan, head of market strategy at Ebury, said the intervention "looks set to strengthen US-Japan relations," with both countries' interests currently aligned: Washington keen to prevent a widening trade deficit, and Tokyo focused on preventing a yen slide that risks stoking inflation and rattling the bond market.