US Treasury intervenes to support yen after Japan steps in
The US Treasury stepped into currency markets to support the yen after Japan intervened, the Financial Times reported. It marked Washington's first joint yen-buying intervention with Tokyo in more than a decade. The yen had been languishing near 40-year lows.
The US Treasury moved into currency markets to support the yen after Japan carried out its own intervention, the Financial Times reported Saturday. The step marked the first joint yen-buying intervention between Washington and Tokyo in more than a decade.
The yen had recently been trading near its lowest levels in 40 years, a slide that has sharply raised the cost of Japanese imports and pushed Tokyo to intervene in the market. Washington's participation in the move is seen as a rare example of currency-policy coordination between the two allies.
Analysts say the joint intervention could slow the yen's depreciation, but underlying pressures - including interest rate differentials and capital flows - persist. Markets will be watching Tokyo and Washington for further signals and any additional intervention in the days ahead.
Read next
US Fed dissenters call for rate hikes to combat sustained inflation
A group of Federal Reserve officials dissenting from the current policy stance is calling for interest rate hikes, warning that inflation risks becoming entrenched if action is delayed. The dissent highlights a growing split within the central bank over the path forward.
US Treasury tells banks further yen intervention possible; yen surges
Rare Japan-South Korea joint intervention shakes up yen and won
Argentina's central bank reform bill reaches the lower house: what would change
