US, Japan coordinate yen purchases

The US and Japanese governments have coordinated to stabilize the yen after it experienced a significant drop last week, as part of a historic intervention aimed at preventing broader economic destabilization. US Treasury Secretary Scott Bessent stated that the yen is "very undervalued," highlighting Japan's currency weakness over recent months, which has been attributed to Prime Minister Sanae Takaichi's expansionary fiscal policy, including increased defense spending.

Analysts suggest that the White House was concerned that a yen selloff could further elevate US bond yields, which have been elevated. This intervention echoes Washington's previous actions on behalf of Argentina's peso last fall, timed to support President Javier Milei's economic liberalization efforts.

Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.