Japan, US confirm joint yen-buying intervention, signal more action to prevent selloff

Japan and the US confirmed a joint yen-buying intervention on Monday, the first since 2011, to prevent the yen's slide to 40-year lows and avert global economic spillovers. Japan's Finance Minister Satsuki Katayama stated, "We will not hesitate conducting further coordinated intervention." The yen surged over 1% after the announcement, reaching 155.20 per dollar. US Treasury Secretary Scott Bessent also confirmed the action, adding, "We strongly support Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen." This move puts pressure on the Bank of Japan to consider an earlier interest rate hike, with market speculation pointing to a September increase. Despite the intervention, some analysts remain skeptical about its long-term effectiveness against underlying factors like interest rate differentials and rising fuel costs.