Japan, US confirm joint yen-buying intervention, signal more action
The rare joint intervention – the first since 2011 - aimed to prevent a selloff in the yen and Japanese government bonds from causing global spillovers.
Japan and the United States have jointly conducted a rare intervention to buy yen, confirming they will take further action to prevent a slide in the currency and the value of Japanese government bonds from causing global spillovers. The intervention, the first since 2011, comes after the yen reached fresh 40-year lows, data showed Japan may have spent up to US$36.58 billion buying yen during Friday's joint effort.
The US Treasury sold euros to acquire yen, though the exact amount is unknown. President Trump stated the intervention was a display of friendship and support for the world economy. Finance Minister Satsuki Katayama stated Japan will not hesitate to conduct further coordinated interventions. The yen surged over 1% to 155.20 per dollar following the announcement, its strongest since early May.
Analysts noted the intervention could help address concerns over the yen's weakness, but structural factors may continue to drive its decline.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
