US and Japan jointly intervene to prop up yen in rare move
The United States and Japan carried out a rare joint intervention in currency markets to support the yen, officials confirmed. Both countries said they would not hesitate to act again if volatility continues.
The United States and Japan intervened jointly in currency markets to support the yen, in a rare coordinated move confirmed by officials from both countries. Japan is estimated to have spent tens of billions of dollars buying yen to slow its decline against the dollar.
Officials from both governments said they would not hesitate to intervene again if market volatility continues. The move follows months of pressure on the yen, driven by a wide gap between US and Japanese interest rates as well as steady demand for dollar assets.
Analysts say the coordinated action buys time rather than resolving the underlying pressure on the currency, since Japan's central bank has kept interest rates far below those in the United States. Markets are now watching for any signal that Tokyo will shift its monetary stance.
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