Officials signaled coordinated action to slow the yen’s sharp losses. Markets now await confirmation of the intervention’s size and timing.

In Tokyo on August 2, Japanese Finance Minister Satsuki Katayama will announce that Tokyo and Washington have undertaken joint actions in the currency market aimed at stopping the yen’s slide to 40-year lows, according to two government officials who spoke on condition of anonymity due to the sensitivity of the situation.

It is expected that Katayama will emphasize the two countries’ resolve to counteract excessive yen weakness. Sources also noted that a decision may be made, and the operation is ongoing.

Joint Actions by Japan and the United States in the Currency Market

The Japanese Ministry of Finance did not respond to journalists’ inquiries, and representatives of the U.S. Treasury did not comment.

According to sources, the anticipated announcement follows several rounds of yen purchases in the market by Japanese and American authorities – the first such joint intervention since 2011 – with the aim of supporting the yen against the dollar, which is trading at 40-year lows.

Context of Interventions and Official Positions

In particular, reports say that the Japanese government conducted yen purchases in New York on Thursday, a few hours before the Bank of Japan decided to leave monetary policy unchanged on Friday, while hinting at the possibility of an earlier rate hike. Such actions come amid signals about future steps in monetary policy.

Scott Bessent, who recently said that the yen is “very undervalued” in his view, had a note with the phrases “To Do” and “Buy Japanese Yen (JPY) $5-10 billion” during Friday’s meeting. Also on Friday, the U.S. Treasury told several banks that it may intervene in the yen market and that they should be prepared for future actions.

Timeline of Events and Next Steps

These steps underscore the willingness of the two countries to act together to stabilize the yen. The market is closely watching further actions by the Japanese and American authorities and any potential future coordinated steps depending on how the currency market develops.