U.S. and Japan officially acknowledge joint intervention to counter yen weakness
Joint intervention to counter yen weakness: the U.S. and Japan have stepped into the foreign exchange market together for the first time in 15 years Attention is also on the possibility of further intervention; check the direction of exchange rates and market impact
The governments of the United States and Japan have officially acknowledged that they jointly intervened in the foreign exchange market to prevent the yen from weakening. The joint response by the two countries is the first in 15 years since 2011.
U.S. President Donald Trump said the measure was carried out in cooperation with Japan, and the New York Federal Reserve under the U.S. Treasury Department was also reported to have taken steps to sell euros and buy yen on the 31st of last month. It appears to have been aimed at reducing market anxiety as the yen's weakness intensified after the Bank of Japan left its benchmark interest rate unchanged.
U.S. Treasury Secretary Scott Bessent said he would not rule out additional joint intervention to respond to disorderly currency fluctuations. However, experts believe it is not easy for Japan to completely reverse the yen's weakening trend through intervention alone without adjusting interest rates.