{"id":67882,"date":"2026-08-03T01:49:15","date_gmt":"2026-08-03T01:49:15","guid":{"rendered":"https:\/\/www.europesays.com\/japan\/67882\/"},"modified":"2026-08-03T01:49:15","modified_gmt":"2026-08-03T01:49:15","slug":"japan-confirms-joint-intervention-with-u-s-in-bid-to-halt-yens-slide","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/japan\/67882\/","title":{"rendered":"Japan confirms joint intervention with U.S. in bid to halt yen\u2019s slide"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Monitors display the Japanese Yen exchange rate against the U.S. dollar in Tokyo on Friday.Manami Yamada\/Reuters<\/p>\n

Japan and the United States conducted co-ordinated yen-buying intervention and will not hesitate to take further action, Japan\u2019s finance ministry said on Monday, confirming a rare bilateral action to halt the yen\u2019s slide to fresh 40-year lows.<\/p>\n

The news underscores both countries\u2019 resolve to prevent a sell-off in the yen and Japanese government bonds (JGB) from causing global spillovers, such as adding upward pressure on already rising U.S. Treasury yields, analysts say.<\/p>\n

The joint intervention is the first since 2011\u2019s co-ordinated action to weaken the yen after the devastating earthquake in eastern Japan.<\/p>\n

In its statement, Japan\u2019s finance ministry said Friday\u2019s yen-buying intervention with the U.S. Treasury Department \u201ccountered excessive volatility and disorderly movements in the Japanese yen in recent months.\u201d<\/p>\n

Canadian dollar overtook yen as most heavily shorted currency before Trump\u2019s latest tariff threats<\/a><\/p>\n

\u201cThe Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,\u201d it added. \u201cWe will not hesitate to conduct further joint intervention.\u201d<\/p>\n

Preceding the announcement, U.S. President Donald Trump said on Sunday the United States was helping Japan to prop up the yen as a sign of friendship and to help the world economy.<\/p>\n

\u201cThey have a weakening yen, and they wanted a little bit of help. And we\u2019re always there for Japan,\u201d Trump said in response to a reporter\u2019s query why the U.S. is helping to support the yen.<\/p>\n

The dollar suddenly dropped against the yen on Monday, reversing gains it made earlier in the session after the confirmation from the U.S. and Japan that they intervened in the currency market. The dollar fell 0.6 per cent against the yen to an intraday low of 156.50 in the Asian morning.<\/p>\n

\u201cThe joint intervention is the culmination of Japan\u2019s alliance with the United States,\u201d Japan\u2019s top currency diplomat Atsushi Mimura told reporters on Monday.<\/p>\n

\u201cWe will continue to align (currency policy) with the Bank of Japan\u2019s monetary policy,\u201d he said, suggesting the government will work hand in hand with the BOJ in arresting yen falls.<\/p>\n

U.S. Treasury Secretary Scott Bessent also confirmed Friday\u2019s effort, adding Washington \u201cwill not hesitate to participate in further joint intervention.\u201d<\/p>\n

\u201cWe strongly support Japan\u2019s decisive market and monetary steps to correct the substantial undervaluation of the yen,\u201d Bessent said in a separate statement on X, repeating his calls for further interest rate hikes by the Bank of Japan.<\/p>\n

The remarks put the spotlight on the BOJ, which last week kept rates on hold but signalled scope for a rate hike as soon as its next policy meeting in September.<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

A notepad in front of U.S. Secretary of the Treasury Scott Bessent that reads ‘To Do Buy Japanese Yen $5-10 bil,’ at Camp David, Maryland, on Friday.Daniel Heuer\/Reuters<\/p>\n

Japan has been struggling to curb a relentless drop in the yen that pushes up import prices and stokes broader inflation, hitting households\u2019 wallets and Prime Minister Sanae Takaichi\u2019s public approval ratings.<\/p>\n

Tokyo\u2019s solo intervention conducted between late April and early May caused only a brief yen rebound. The BOJ\u2019s June rate hike to a 31-year high of 1 per cent also gave the struggling currency little lasting boost.<\/p>\n

Before Friday\u2019s confirmed joint intervention with the U.S., Japan may have sold as much as US$58.97-billion to buy yen when it intervened in New York markets on Thursday, BOJ data suggested.<\/p>\n

Analysts doubt whether the latest round of action could counter structural factors driving down the yen, such as the rising cost of fuel from the Middle East conflict and the still wide Japan-U.S. interest rate differentials.<\/p>\n

\u201cThe announcement effect of joint intervention is much bigger than solo action by Japan,\u201d though the yen fell after the announcement as it was largely within expectations, said Tsuyoshi Ueno, a senior economist at NLI Research Institute.<\/p>\n

\u201cThe fundamentals driving yen weakness haven\u2019t changed, so we likely won\u2019t see one-sided yen rises from this intervention.\u201d<\/p>\n

In a sign of further Japan-U.S. co-ordination, Bessent said the United States would consider increasing in coming months the size of the Federal Reserve\u2019s repurchase facility providing temporary dollar liquidity, calling the tool an \u201cimportant backstop.\u201d<\/p>\n

The comment came after the MOF\u2019s rare X post on Saturday that it had \u201ca broad range of tools to address market liquidity needs,\u201d including access to the Fed\u2019s repurchase facility providing temporary dollar liquidity.<\/p>\n

The Fed facility, introduced in 2020 to steady markets during the COVID-19 pandemic, allows Japan to raise dollar liquidity without outright sales of U.S. Treasuries, potentially easing funding pressures on Tokyo for intervention.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Monitors display the Japanese Yen exchange rate against the U.S. dollar in Tokyo…\n","protected":false},"author":2,"featured_media":67883,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[22309,22300,22310,212,22294,22311,1368,22293,22305,22306,22302,22295,22292,191,251,1729,22304,22299,22321,22296,22297,2752,8,17,22301,500,2164,22312,22298,22316,22317,22319,22314,22318,16714,22315,1258,14783,22308,180,22307,22313,3631,907,501,22303,8559,213,22320],"class_list":["post-67882","post","type-post","status-publish","format-standard","has-post-thumbnail","category-japan","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-japan","tag-japanese","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/67882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=67882"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/67882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/67883"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=67882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=67882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=67882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}