Japan, US step in to support yen, Tokyo keeps door open for more action
Japan and the United States intervened in currency markets to address yen volatility. This joint action followed a September 2025 finance ministers' statement. Tokyo is ready for further intervention if the yen continues to swing. Japan also plans to use the Federal Reserve's FIMA Repo Facility. Economic growth forecasts were cut due to oil prices and a weaker yen.
The US and Japan have joined forces in a rare currency market intervention, with Tokyo signaling readiness for further coordinated action if the yen's volatility persists. The Japanese Ministry of Finance announced on Monday that it had intervened in the foreign exchange market on July 31 to buy yen, working in tandem with the US Department of the Treasury.
This move was aimed at addressing excessive volatility and disorderly movements in the Japanese currency, as described by the ministry. The intervention was carried out under the framework of the Japan-US Finance Ministers' Joint Statement issued in September 2025. Moreover, Japan plans to utilize the US Federal Reserve's Foreign and International Monetary Authorities (FIMA) Repo Facility in the future, should the need arise.
The ministry emphasized close coordination with Washington and expressed readiness to intervene again if market conditions require it. The intervention comes amid concerns over the weaker yen's impact on Japan's economic growth, particularly in the face of higher crude oil prices due to Middle East unrest.
Brief written by urgent.news from Times of India's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
