US and Japan jointly intervene to prop up yen in rare move
Both countries have said that they will not hesitate to conduct joint interventions in the future.
The United States and Japan have jointly intervened in the foreign exchange market to prop up the value of the yen, marking the first such coordinated action since 2011. The intervention came amid concerns that excessive volatility in the yen could have a negative impact on the global economy, including potentially increasing borrowing costs for the United States.
Both Japan's finance ministry and US Treasury Secretary Scott Bessent have expressed their commitment to conducting joint interventions in the future, highlighting the countries' shared goal of maintaining a stable and strong yen. The yen's recent decline can be attributed to various factors, including Japan's lower central bank interest rates compared to the US and the country's aging population, low productivity, and heavy reliance on energy imports priced in US dollars.
The Bank of Japan raised interest rates in June, while the US Federal Reserve maintained its benchmark rate within a higher range. US President Donald Trump expressed his support for Japan's actions, stating that the United States would always be there for its ally.
Written by urgent.news from BBC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
