Rare US-Japan intervention as yen hits 40-year low: what does it mean?
Washington steps in to save Tokyo’s weakened currency in first joint yen-buying action for almost 30 years, causing its value to surge.
Source excerpt
Only days ago, the Japanese yen’s descent showed no signs of stopping, having already dropped to a 40-year low.
But by Monday morning – after a rare intervention on the currency’s behalf by Tokyo and Washington – it surged as high as 155.23 per US dollar, its strongest level since early May, according to Chinese financial data provider Wind.
The joint action took on an extra layer of intrigue after a Reuters photograph revealed that a “to-do” list from US Treasury Secretary Scott Bessent during a cabinet meeting indicated he was considering US purchases of US$5 billion to US$10 billion worth of yen.
US President Donald Trump called the move “a signal of friendship” in an interview aboard Air Force One on Sunday, noting that the US was “always there for Japan”, while Bessent also said on social media that the US “will not hesitate to participate in further joint intervention”.
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