US joins Japan in rare yen intervention

The United States joined Japan in a rare coordinated effort to support the yen after the currency fell to multidecade lows. The move came as the yen weakened sharply last week before recovering some ground on Friday. Analysts said one concern for Washington was that Japan might otherwise sell large amounts of U.S. Treasurys to finance intervention, which could put pressure on American bond markets. Officials also pointed to the Federal Reserve’s FIMA repo facility as a way for Japan to obtain dollar liquidity without selling Treasurys outright. The intervention also reflects broader economic and geopolitical considerations. Some analysts said a weaker yen can affect trade balances, Japanese government bond yields, and global markets, while others argued that intervention alone cannot fix the structural factors behind the currency’s decline.